Election time huh? every party promising development. Oh well I am not gonna write about any political party and in fact not even about politics. This one is purely based on a new Act - "Companies Act, 2013". This Act has introduced several new concepts and has also tried to streamline many of the requirements by introducing new definitions. In this blog post I am going to share some of these new concepts which I feel unlike the promises of the political leaders can really deliver.
2 things which can be the first step towards development :
1) The new 2% giving mandate as CSR (Corporate social Responsibility).
The Act mandates that these companies would be required to spend at least 2% of the average net-profits of the immediately preceding three years on CSR activities, and if not spent, explanation for the reasons thereof would need to be given in the director’s report (section 135 of the companies Act, 2013)
Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large
In short, its about how companies manage the business processes to produce an overall positive impact on society.
2) Women sitting on corporations' board of directors.
Many people mourn about, position of women in society but this Act has practically took step to improve it. Sec 149(1) of this act mandates to have at least of one woman director in board of directors.
While this new requirement will go a long way in encouraging gender diversity, it has already created quite a stir in the manner in which companies will ensure compliance.
Blog Post By : Harshal Morwale ( +Harshal Morwale )
Read more about this Act : Click here
Please Do Share and Comment!
No comments:
Post a Comment