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A company covered by section 135 of the Companies Act, 2013 has to spend ₹40 lakh on CSR under section 135(5) for the year. Who performs the functions of the CSR Committee?

Question and options

A company covered by section 135 of the Companies Act, 2013 has to spend ₹40 lakh on CSR under section 135(5) for the year. Who performs the functions of the CSR Committee?

  1. The members by ordinary resolution

  2. The audit committee of the board

  3. The board of directors

  4. A CSR Committee of at least three directors

Answer and explanation

Correct answer: C - The board of directors

Under section 135(9) of the Companies Act, 2013, where the amount to be spent under section 135(5) does not exceed ₹50 lakh, the company need not constitute a CSR Committee and the board of directors discharges its functions. A committee of three or more directors is needed only when the amount exceeds that limit.

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