The government today approved changes to the Companies Bill, 2011, introducing a provision to compel all companies to spend on activities related to corporate social responsibility (CSR). A company not doing so or spending less than the required amount would have to explain why.
The revised Bill is expected to be introduced in the winter session of Parliament. It has also limited the number of companies an auditor can serve at any time to 20. It has brought more clarity on the criminal liability of auditors. The changes include annual ratification of appointment of an auditor for five years and a new clause for falsely inducing banks to obtain credit.