PROPOSED CHANGES AS PER COMPANIES AMENDMENT BILL

2019 RELATED TO CSR.

Amendments were proposed to the Companies Act 2013 related to Corporate Social
Responsibility in order to strengthen the regulatory frame work and ensure further actions for
the violations. Bill states about the de-clogging and specifying the provision for the unspent
CSR funds which was undertaken into limelight by the Cabinet. Moreover, it also lays down
that procedural and technical defaults would be De-criminalized in reference to which
compliance would be encouraged.
It is pertinent to take the key changes into consideration which renders that companies are
allowed to keep unspent money in another account i.e. escrow Account. Companies those are
unable to spend the their full amount for CSR activities in ongoing projects within the
financial year, the leftover amount for the same should be transferred to the CSR account and
later, the amount has to be utilized within next three financial year as per proposed
amendment. Furthermore, if any amount still remaining unutilised in such CSR account
would be transferred to National CSR fund or to Schedule VII of the Companies Act 2013.
Likewise, this proposed amendment will decrease the burden upon Special courts and
furthermore it mentions applications for change of financial year and shifting of powers for
conversion from public to private companies from NCLT to the central government, as well
as gives the clearness upon the specific powers of NFRA (National Finance Regulatory
Authority).