Society established for CSR, can company avoid 3 year track record requirement if added as member

[Nishtha Jain]

A society was formed for CSR purposes. All shareholders and directors are members of this newly incorporated society. As per implementation Rules of Corporate Social Responsibility Rules, if a society is established by the company, it need not have to have the track record of at least 3 years.

In this case, if we amend the object clause(add incorporated for CSR purposes of the company), as well as add the company as a member of the society. Can this 3 years track record requirement be avoided? No PAN has been acquired and no registration under 80G/12A obtained yet. Society was registered on 7.07.026

AI Summary

CSR implementing agency track record exemption depends on being established by the company, not later membership changes.
The CSR implementing agency track record exemption applies only where the society is genuinely established by the company or jointly with other companies, and an independent society ordinarily needs a three-year track record of similar activities. Later amendment of objects or admission of the company as a member will not usually convert a society originally formed by individuals into one established by the company; incorporation documents, founding members, Board resolutions, funding, and governance will be examined. PAN and the relevant income-tax registrations are also required before the society can function as an eligible CSR implementing agency.