Question

Provisions regarding Corporate Social Responsibility are incorporated in the Companies Act, 2013 under

• A. Section-101
• B. Section-111
• C. Section - 135
• D. Section-235

Hint:

The Companies Act, 2013 introduced several new concepts. CSR (Section 135), One Person Company (OPC), and provisions related to independent directors are some of the most important and frequently tested new areas. Memorize these key section numbers.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
The question asks for the specific section in the Companies Act, 2013, that contains the provisions for Corporate Social Responsibility (CSR).
Step 2: Key Formula or Approach:
The relevant section in the Companies Act, 2013 is:
- Section 135: Titled "Corporate Social Responsibility". This section mandates certain companies (based on their net worth, turnover, or net profit) to constitute a CSR Committee of the Board and spend a specified amount (at least 2% of average net profits of the preceding three years) on CSR activities. The activities that qualify as CSR are listed in Schedule VII of the Act.
Step 3: Detailed Explanation:
- Section 101 deals with the notice of meetings.
- Section 111 deals with the circulation of members' resolutions.
- Section 235 deals with the power to acquire shares of shareholders dissenting from a scheme or contract approved by the majority.
Therefore, the correct section that incorporates CSR provisions is Section 135.
Step 4: Final Answer:
Provisions regarding Corporate Social Responsibility are incorporated under Section - 135.

Answer 2

The question asks which section of the Companies Act, 2013 contains the Corporate Social Responsibility provisions. Let's check what each numbered section actually deals with.

1. Section-101: This section deals with notice of general meetings of a company, specifying the length of notice required and to whom it must be given. It has nothing to do with CSR.
2. Section-111: This section concerns circulation of members' resolutions, allowing shareholders to require the company to circulate certain resolutions or statements. Again, this is unrelated to CSR.
3. Section - 135: This is the section titled "Corporate Social Responsibility". It requires companies meeting specified thresholds of net worth, turnover, or net profit to form a CSR Committee and spend a set percentage of average profits on CSR activities listed in Schedule VII.
4. Section-235: This section deals with the power to acquire shares of dissenting shareholders when a scheme or contract has been approved by the majority, a company law provision about share acquisition, not CSR.

Since only one of the four numbered sections actually addresses Corporate Social Responsibility, while the others govern entirely unrelated company law matters.

Therefore, the correct answer is Section - 135.