THE COMPANIES AMENDMENT ACT, 2025 INTRODUCED CSR LOWER APPLICABILITY THRESHOLDS, MANDATORY EXPERTISE IN CSR COMMITTEES, AND STRICTER CSR COMPLIANCE/REPORTING NORMS

 

THE COMPANIES AMENDMENT ACT, 2025  INTRODUCED CSR LOWER APPLICABILITY THRESHOLDS, MANDATORY EXPERTISE IN CSR COMMITTEES, AND STRICTER CSR COMPLIANCE/REPORTING NORMS

The Companies Amendment Act, 2025, along with related Amendment Rules effective from July 14, 2025, has introduced substantial changes to India's CSR framework, focusing on lower applicability thresholds, mandatory expertise in CSR committees, and stricter compliance/reporting norms.

AMENDMENT PROVIDES LOWER LIMITS SO THAT NOW MANY COMPANIES HAVE TO ADHERE CSR PROVISIONS.

MANDATORY CSR EXPERTISE IN COMMITTEES

The CSR Committee must now include at least one director with extensive experience in CSR-related matters.

This aims to ensure more informed decision-making and move CSR from a mere compliance exercise to a strategic function.

STRICTER RULES FOR IMPLEMENTING AGENCIES (EFFECTIVE JULY 14, 2025)

KEY CHANGES TO THE REVISED E-FORM CSR-1 INCLUDE

Thus, these CSR amendments aim to enhance transparency, accountability, and the overall effectiveness and impact of corporate social responsibility activities across India.

R V SECKAR , FCS, LLB 79047 19295