CS Professional · CSR and Social Governance · CSR Policy
The CSR Committee of Narmada Cements Ltd has drafted a CSR Policy. What is the correct sequence of steps under section 135 for the policy to take effect?
The Committee formulates and recommends the CSR Policy, and the Board approves it after taking the recommendations into account. The Board then discloses the policy contents in its report and places it on the company website, if any. The roles are not reversible and shareholder approval is not required.
- AThe Board formulates the policy and the Committee approves it
- BThe Committee formulates and recommends it, and the Board approves it after considering the recommendations, then discloses its contents in the Board's report and on the website, if anyCorrect
- CThe Committee approves it and the Board only monitors it
- DThe shareholders approve it and the Committee publishes it
Explanation
Section 135(3)(a) makes the Committee formulate and recommend the policy. Section 135(4)(a) requires the Board to approve it after taking the recommendations into account, disclose its contents in its report and place it on the company's website, if any. Option one reverses the roles.
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