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MCA Amended the Schedule VII of the Companies Act 2013
MCA vide notification No. G.S.R. 525(E) dated 24th August, 2020 amended the Schedule VII of the Companies Act 2013. The notification stated that:
In the said Schedule, for item (ix) and the entries thereto, the following item and entries shall be substituted, namely:-
“(ix) (a) Contribution to incubators or research and development projects in the field of science, technology, engineering and medicine, funded by the Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government; and
(b) Contributions to public funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defense Research and Development Organisation (DRDO); Indian Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs)”.
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Amended Companies (Corporate Social Responsibility Policy) Rules, 2014
MCA vide notification No. G.S.R. 526(E) dated 24th August, 2020 further amended the Companies (Corporate Social Responsibility Policy) Rules, 2014. In this Notification MCA amended the Rule 2, Rule 4 & Rule 6 of Companies (Corporate Social Responsibility Policy) Rules, 2014.
- In the Companies (Corporate Social Responsibility Policy) Rules, 2014 (hereinafter referred to as the said rules), in rule 2, in sub-rule (1), in clause (e), the following proviso shall be inserted, namely:-
“Provided that any company engaged in research and development activity of new vaccine, drugs and medical devices in their normal course of business may undertake research and development activity of new vaccine, drugs and medical devices related to COVID-19 for financial years 2020-21, 2021-22 and 2022-23 subject to the conditions that-
- such research and development activities shall be carried out in collaboration with any of the institutes or organisations mentioned in item (ix) of Schedule VII to the Act. (Notification No. S.R. 525(E))
- details of such activity shall be disclosed separately in the Annual Report on CSR included in the Board’s Report”.
- In the said rules, in rule 4, in sub-rule 1, the words “excluding activities undertaken in pursuance of its normal course of business” shall be omitted.
- In the said rules, in rule 6, in sub-rule (1), —
- first proviso shall be omitted;
- In the second proviso, the word “further” shall be omitted.
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Practicing Company Secretary, M.Com and Commerce Graduate and founder at Shaffy Mehta & Co. She is having an overall 4 years experience of Company Law and other Corporate Laws.