Clause 37 - Amendment of section 135. - Companies (Amendment) Bill, 2017

Amendment of section 135. 37. In section 135 of the principal Act,- ( i ) in sub-section ( 1 ),- (a ) for the words any financial year , the words the immediately preceding financial year shall be substituted; ( b ) the following proviso shall be inserted, namely:- Provided that where a company is not required to appoint an independent director under sub-section ( 4 ) of section 149, it shall have in its Corporate Social Responsibility Committee two or more directors. ; ( ii ) in sub-section ( 3 ), in clause ( a ), for the words and figures as specified in Schedule VII , the words and figures in areas or subject, specified in Schedule VII shall be substituted; ( iii ) in sub-section ( 5 ), for the Explanation , the following Explanation shall be substituted, namely:- ' Explanation .-For the purposes of this section net profit shall not include such sums as may be prescribed, and shall be calculated in accordance with the provisions of section 198.'.