October 14, 2019
Summary of Notifications issued by MCA on 11/10/2019 are provided below:
1. MCA clarifies eligibility criteria with respect to CSR contribution made towards Incubators, Public- funded universities, IITs and National Laboratories and Autonomous Bodies.
Through this amendment to Schedule VII of the Companies Act 2013, CSR contribution made to Public- funded universities, IITs and National Laboratories and Autonomous Bodies, established under specified national organizations with the aim to promote Sustainable Development Goals, in addition to Incubators run by Academic Institutions, will be treated as eligible CSR contribution under Section 135 of the Companies Act, 2013.
2. MCA regularises the discrepancy in Rule 11 of Companies (Meetings of Board and its Powers) Rules, 2014 pertaining to loans and investment by Company.
To synchronise Rule 11 of Companies (Meetings of Board and its Powers) Rules, 2014 with Clause 11(a) of Section 186 of the Companies Act, 2013, which lists out the situations where provisions of Section 186 are not applicable, the words “business of financing industrial enterprises” shall be substituted in place of “business of financing of companies”.
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