Question

Provisions regarding Corporate Social Responsibility are incorporated in the Companies Act, 2013 under

• A. Section-101
• B. Section-111
• C. Section - 135
• D. Section-235

Hint:

The Companies Act, 2013 introduced several new concepts. CSR (Section 135), One Person Company (OPC), and provisions related to independent directors are some of the most important and frequently tested new areas. Memorize these key section numbers.

Answer 1

The Correct Option is C

Each section number listed here governs a distinct area of company law, so matching subject to number is the quickest way to answer.

1. Section-101: governs notice requirements for company meetings, unrelated to CSR.
2. Section-111: governs circulation of members' resolutions, also unrelated to CSR.
3. Section - 135: this is the CSR section itself, requiring eligible companies to set up a CSR committee and spend a fixed share of profits on listed CSR activities.
4. Section-235: governs acquisition of shares from dissenting shareholders under an approved scheme, again unrelated to CSR.

The correct answer is Section - 135.

Answer 2

A useful way to narrow this down is to notice that the CSR provision sits within the part of the Companies Act, 2013 dealing with accounts of companies, where CSR spending obligations naturally connect to a company's profits and financial reporting.

1. Section-101: falls under the provisions on meetings and general procedure, a purely procedural topic disconnected from CSR spending.
2. Section-111: also falls under the meetings-related provisions, dealing with shareholder rights to circulate resolutions, again unconnected to CSR.
3. Section-235: sits within provisions on compromises, arrangements, and amalgamations, concerning share acquisitions during restructuring, a completely separate subject from social responsibility spending.
4. Section - 135: because CSR spending is tied to a company's average net profits over preceding years, it makes sense that this obligation is placed in the part of the Act dealing with accounts and profits, exactly where this section sits.

Given this placement and its explicit title, the section addressing Corporate Social Responsibility is Section - 135.