Preference for local area in CSR spending reiterated; companies must prioritise nearby communities when allocating CSR funds. Section 135(5) of the Companies Act, 2013 mandates that companies give preference to the local area and areas around it where it operates when allocating funds for Corporate Social Responsibility activities; the Ministry of Corporate Affairs has reiterated that this proviso must be followed in letter and spirit as a compliance requirement.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Preference for local area in CSR spending reiterated; companies must prioritise nearby communities when allocating CSR funds.
Section 135(5) of the Companies Act, 2013 mandates that companies give preference to the local area and areas around it where it operates when allocating funds for Corporate Social Responsibility activities; the Ministry of Corporate Affairs has reiterated that this proviso must be followed in letter and spirit as a compliance requirement.
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