Consider the following statements. A key pillar of democratic governance is citizensandrsquo; power to question the state. The Companies Act that mandates corporates to pay at least 2% of their net profits before tax to the development activities is a case of state-driven governance mechanism promoting collaboration among non-state actors.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?

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Consider the following statements.

A key pillar of democratic governance is citizens’ power to question the state.
The Companies Act that mandates corporates to pay at least 2% of their net profits before tax to the development activities is a case of state-driven governance mechanism promoting collaboration among non-state actors.

Which of the above statements is/are correct?

a)
1 only
b)
2 only
c)
Both 1 and 2
d)
Neither 1 nor 2

Correct answer is option 'C'. Can you explain this answer?

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Consider the following statements. A key pillar of democratic governan...

Key Pillar of Democratic Governance
- The statement that a key pillar of democratic governance is citizens' power to question the state is correct.
- In a democratic system, citizens have the right to hold the government accountable, ask questions, and demand transparency in decision-making processes.
- This helps ensure that the government is responsive to the needs and concerns of the people it governs.

State-Driven Governance Mechanism
- The Companies Act that mandates corporates to pay at least 2% of their net profits before tax to development activities is an example of a state-driven governance mechanism.
- This mechanism promotes collaboration among non-state actors, such as corporations, in contributing to social and economic development initiatives.
- By requiring corporates to allocate a portion of their profits towards development activities, the state is leveraging the resources and capabilities of the private sector for the greater good of society.
Therefore, both statements are correct as they highlight important aspects of democratic governance and state-driven mechanisms that aim to promote collaboration and accountability among various stakeholders in society.

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Consider the following statements. A key pillar of democratic governan...

Section 135 of the Companies Act mandates corporates who are beyond a certain level of profits and turnover to pay at least 2% of their net profits before tax to the development space. This law gives corporates the necessary impetus to collaborate with non-state actors like Non-Governmental Organisations (NGOs) and Civil Society Organisations (CSOs). This is a classic case of state-driven governance mechanism promoting collaboration among non-state actors.
A key pillar of democratic governance is citizens’ power to question the state.

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Consider the following statements. A key pillar of democratic governance is citizens’ power to question the state. The Companies Act that mandates corporates to pay at least 2% of their net profits before tax to the development activities is a case of state-driven governance mechanism promoting collaboration among non-state actors. Which of the above statements is/are correct?

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Consider the following statements. A key pillar of democratic governance is citizens’ power to question the state. The Companies Act that mandates corporates to pay at least 2% of their net profits before tax to the development activities is a case of state-driven governance mechanism promoting collaboration among non-state actors.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?

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