Section 50L: CSR Fund

50L. CSR Fund (1) Every company shall, in every year, set up a CSR Fund equivalent to 2 per cent of its chargeable income of the preceding year. 230 Acts 2016 (2) (a) Subject to subsection (9), an amount equal to the percentage of the CSR Fund, as speci(cid:191)ed in the following table, shall be remitted to the Director-General – Percentage to be remitted to the Director-General CSR Fund set up on or after 1 January At least 50% 2017 up to 31 December 2017 CSR Fund set up on or after 1 January At least 75% (b) The remainder shall be used by the company – (i) in respect of a CSR Fund set up before 1 January 2019, to implement a CSR Programme in accordance with its own CSR Framework; (ii) i n respect of a CSR Fund set up on or after 1 January 2019, to implement a CSR Programme or finance a non-governmental organisation implementing a CSR Programme in the priority areas of intervention as speci(cid:191)ed in Part A of the Tenth Schedule. (3) No CSR money shall be spent by a company in respect of the activities speci(cid:191)ed in Part B of the Tenth Schedule. Acts 2016 231 (4) Subject to subsection (9), the amount referred to in subsection (2)(a) shall be remitted to the Director-General as follows – (a) i n the case of a company required to submit an APS Statement under Sub-part AA – (i) for the (cid:191)rst three quarters, 25 per cent for each of the quarters together with the APS Statement required to be submitted under section 50B; and (ii) f or the last quarter, 25 per cent at the time the company submits its annual return under section 116; (b) i n the case of a company which is not required to submit an APS Statement under section 50B(4), together with its annual return under section 116 or 119. (6) Any amount unspent under subsection (2)(b) shall be remitted to the Director-General, together with the company’s annual return under section 116 or 119. (7) The Authority shall, as soon as is practicable, remit any sum collected under subsections (2)(a) and (6) to the Accountant-General for onward remittance to the National CSR Foundation. (8) This Sub-part shall apply to a resident société, other than a resident société holding a Global Business Licence under the Financial Services Act, as it applies to a company, and its net income shall be deemed to be its chargeable income and any distribution of its net income shall, for the purpose of this Subpart, be deemed to be dividends. (9) (a) The amount to be remitted to the DirectorGeneral shall be reduced by such amount as the company intends to spend in respect of an approved CSR programme which (cid:191)ts within the priority areas of intervention as speci(cid:191)ed in Part A of the Tenth Schedule. 232 Acts 2016 (b) The amount to be remitted to the DirectorGeneral shall only be reduced where the company receives the prior written approval of the National CSR Foundation. (i) in section 59A – (A) in subsection (1) – (I) b y adding the following new paragraph, the word “or” at the end of paragraph (a) being deleted and the comma at the end of paragraph (b) being deleted and replaced by a semicolon – (c) a company takes over, or acquires the whole or part of the undertaking of another company and the Minister has deemed such a take-over or transfer of undertaking to be in the public interest, (II) b y inserting, after the words “safeguard of employment”, the words “or on such other terms and conditions”; (B) in subsection (4), in the de(cid:191)nition of “acquiree”, by deleting the words (a) being deleted and the comma at the end of paragraph (b) being deleted and replaced by a semicolon – (c) a company takes over, or acquires the whole or part of the undertaking of another company and the Minister has deemed such a take-over or transfer of undertaking to be in the public interest, (II) b y inserting, after the words “safeguard of employment”, the words “or on such other terms and conditions”; (B) in subsection (4), in the de(cid:191)nition of “acquiree”, by deleting the words “and which is dissolved”; (j) by inserting, after section 59A, the following new section –