The Board of every company referred to in sub-section (1) shall:
(a) After taking into
account the recommendations made by the Corporate Social Responsibility
Committee, approve the Corporate Social Responsibility Policy for the
company and disclose contents of such Policy in its report and also
place it on the company's website, if any, in such manner as may be
prescribed; and
(b) Ensure that the activities as are included in Corporate Social Responsibility
Policy of the company are undertaken by the company.
(5) The Board of every
company referred to in sub-section (1), shall ensure that the company
spends, in every financial year, at least two per cent of the average
net profits of the company made during the three immediately preceding
financial years, in pursuance of its Corporate Social Responsibility
Policy: Provided that the company shall give preference to the local
area and areas around it where it operates, for spending the amount
earmarked for Corporate Social Responsibility activities: Provided
further that if the company fails to spend such amount, the Board shall,
in its report made under clause (o) of sub-section (3) of section 134,
specify the reasons for not spending the amount.
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