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CSEET · Economic and Business Environment · Elements of Corporate Governance

Under Section 135, where the CSR amount a company must spend does not exceed fifty lakh rupees, what is the position regarding the CSR Committee?

When the required CSR spend does not exceed fifty lakh rupees, the company need not constitute a CSR Committee. The Board of Directors discharges the Committee's functions. The obligation to spend the CSR amount still continues, so the company is not exempt.

  1. AThe CSR Committee is not required, and its functions are discharged by the Board of DirectorsCorrect
  2. BThe CSR Committee must have a single independent director
  3. CThe company is exempt from CSR spending entirely
  4. DThe functions are discharged by the audit committee

Explanation

Sub-section (9) states that where the amount to be spent does not exceed Rs 50 lakh, the requirement to constitute the Committee does not apply and the Board discharges its functions. The spending obligation itself remains, so exemption is wrong.

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