The profit-making private sector companies will be asked to spend a minimum of two per cent of their profits on CSR activities in the new Companies Bill, the Union Minister of State for Corporate Affairs, Sachin Pilot, has said.
The Government will not be specific on what to be done, but post the activities, disclosures will be made compulsory, he said, while speaking at the valedictory function of the 32nd annual convention of the Kerala Management Association here.
On CSR being made compulsory, Pilot said India is among the first few countries that made legislations on the issue, the others being Brazil, France and Indonesia.
“Still, ours is the most specific one on the issue,” he added.
The new bill will prevent frauds. He pointed out that the present Companies Act was framed in 1956, which in many ways was not serving its purpose.
The Minister also assured that the New Companies Bill would bring in the much-needed efficiency and transparency in business affairs. In a lighter vein, Pilot said market shares and such things are relevant to members of political parties like him as well. Credibility for those who work in the public domain is important than that of the private sector.
S.R. Nair, KMA President, presided over the function, which was also addressed by All India Management Association President B Shivakumar, and Federal Bank MD and CEO Shyam Sreenivasan.