Companies Act

The coming of the New Companies Act 2013 has created a lot of momentum within the civil society and corporate world. It ensures CSR to be an integral part of the business processes, enhance corporate governance and strengthen regulation for corporates to ensure equitable and sustainable growth of the country. However, there are various business houses and corporates, which from the beginning have been socially conscious and have contributed immensely to the society. Therefore, CSR is not a new concept in India .Many corporates are making an effort to go beyond charity and donation.It can be said that the New Companies Act has raised many expectations among various sectors.The New Companies Act has generated formal and greater responsibility on companies to have a clear framework and process to ensure stringent compliance to be socially responsible towards the socio- development concerns of the society.

Under clause 135 of the companies act, every company having net worth of Rs. 500 Crore, or turnover of Rs. 1000 crore or net profit of Rs. 5 crore has to spend at least 2% of the average net profits made during 3 immediately preceding of the financial year. This has laid grounds for the corporates to be more organized in their approach and more accountable towards the society. The act provides lot of opportunities for corporates to support and directly intervene in societal issues. This act has the potential to change the dynamics of corporate and voluntary sector relationship. There is a wide scope of having a more professional approach towards the sector.

VANI has been actively involved with various companies in strengthening the liaison between VOs and corporates based on shared values. It has been in regular talks with the business houses and their institutions like FICCI, ASOCHEM, ICCI, CII and others with the objective of engaging them for establishing better CSR practices as well as also re-orienting them to expand their support to voluntary organizations working beyond service delivery approach. VANI in this course has worked closely with the private sector. It constitutes a standing committee on business and voluntary sector.