Bill to fine firms over corporate social responsibility tabled in Lok Sabha

The Bill also seeks to empower the Centre to debar directors responsible for mismanagement for five years after approval from NCLT

The government on Thursday introduced a Bill in the Lok Sabha to amend the Companies Act to restructure provisions about unspent funds for the corporate social responsibility (CSR) and impose penalty on firms and officials not adhering to these provisions.
 
The Bill also seeks to empower the Centre to debar directors responsible for mismanagement for five years after approval from the National Company Law Tribunal (NCLT).
 
The Bill proposed that unspent CSR funds be carried forward to a special account and spent within three financial years in case of ongoing projects. This account will be opened by the