Clarification with regard to provisions under section 135(5) of the Companies Act, 2013.-(General Circular No. 06/2O18)

General Circular No. 06/2O18

 F. No. 08/05/2018-CSR

Government of India

Ministry of Corporate Affairs 

"A" Wing, 5th Floor, Shastri Bhawan

Dr. R.P. Road, New Delhi 110001

Date 28th May, 2O18

To

All Regional Directors, 

All Registrar of Companies,

All Stakeholders

Sub: Clarification with regard to provisions under section 135(5) of the Companies Act, 2013.

Sir,

I am directed to say that concerns have been raised by some stakeholders regarding non-compliance of the first proviso to sub-section (5) of section 135 of the Companies Act, 2013, which lays down that the company shall give preference to the local area and areas around it where it operates, for spending the amount earmarked for Corporate Social Responsibility activities.

2. It is reiterated that the above provision has to be followed in letter and spirit.

Yours faithfully.

(Seema Rath)

Deputy Director

Copy to:-

1. E-Governance Cell and Web contents Officer to upload on the website of this Ministry

2. DDG (Statistics), for National Data Portal on CSR

3. Guard File