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Navigating Corporate Social Responsibility: Can Compliance Under Section 135 Of The Companies Act

Navigating Corporate Social Responsibility: Can Compliance Under Section 135 Of The Companies Act, 2013 Reduce The 5% Threshold Prescribed By Section 181?




Vaibhavi Pedhavi, B.A. LL.B. (Hons.), Gujarat National Law University, Gandhinagar

Jane Lalnunsiami, B.A. LL.B. (Hons.), Gujarat National Law University, Gandhinagar

ABSTRACT

In the realm of corporate social responsibility, understanding the interplay between compliance under Section 135 of the Companies Act, 2013, and the 5% threshold outlined in Section 181 becomes crucial. After analysing both the sections independently, the main question arises is whether the expenditure incurred through trust or societies for Corporate Social Responsibility (CSR) purposes, be considered in calculating the 5% prescribed limit specified by Section 181? The present research article aims to delve into a legal analysis of both these sections, and attempts to clarify the complex relationship between CSR contributions by the company and donations made to bona fide charitable trusts and other funds under Section 181. By exploring these legal aspects, author attempts to offer valuable insights into navigating Corporate Social Responsibility within the legal framework of the Companies Act, 2013.

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Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878

Website: www.ijllr.com

Accessibility: Open Access

License: Creative Commons 4.0

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​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

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The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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