For which purpose does rule 4(3) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 allow a company to engage an international organisation?
Question and options
For which purpose does rule 4(3) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 allow a company to engage an international organisation?
Holding its unspent CSR amount for ongoing projects
Designing, monitoring and evaluating its CSR projects
Certifying that its disbursed CSR funds were properly used
Receiving and spending its CSR funds as implementing agency
Answer and explanation
Rule 4(3) of the Companies (CSR Policy) Rules, 2014 lets a company engage international organisations to design, monitor and evaluate its CSR projects and to build the CSR capacity of its own staff. Implementation itself must be by the company or an entity listed in rule 4(1). An unspent ongoing-project amount goes to an Unspent CSR Account in a scheduled bank under section 135(6), and the chief financial officer certifies the use of disbursed funds under rule 4(5).
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