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CS Professional · CSR and Social Governance · Corporate Social Responsibility

The CSR Committee of Narmada Foods Ltd has drafted a CSR Policy listing projects in education and rural sanitation. Under section 135, what is the correct sequence of responsibility for this Policy?

The CSR Committee formulates and recommends the CSR Policy, indicating Schedule VII activities. The Board then approves it after considering those recommendations, discloses its contents in the Board's report and places it on the company's website, if any. Approval is a Board function.

  1. AThe Committee approves the Policy and the Board only notes it
  2. BThe Committee formulates and recommends the Policy; the Board, after considering the recommendations, approves it and discloses its contents in its report and on the websiteCorrect
  3. CThe Board formulates the Policy and the Committee approves it
  4. DThe Committee formulates the Policy and places it on the website; Board approval is not needed

Explanation

Under section 135(3)(a) the Committee formulates and recommends the Policy. Under section 135(4)(a) the Board, after taking the recommendations into account, approves it, discloses its contents in its report and places it on the company's website, if any. Approval therefore rests with the Board, not the Committee.

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