If a society is established by a company, along with several other companies, are all companies allowed to fund the society for their CSR activity, while availing exemption from 3 years track record requirement for the society? Can such society accept funding from other entities who are not members and can such entities claim CSR expenditure ?
As per CSR policy rules, it states that a society must be established by the company, either singly or with any other company. And as society needs to have minimum 7 members, so in this case do all 7 members need to be companies or can they be individuals who represents the companies forming such society?
CSR eligibility for society funding turns on founding companies, outside contributions, and member composition requirements. CSR eligibility questions arise where a society established by a company is used as an implementing vehicle for corporate social responsibility expenditure. The discussion addresses whether all founding companies may fund the society for CSR purposes while relying on the exemption from the three-year track record requirement, whether the society may accept funding from non-members, and whether such funding can qualify as CSR expenditure for those entities. It also asks whether the minimum seven-member requirement must be satisfied by companies or may include individuals representing them. (AI Summary)
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