Corona Impact: Extension and relief by the Ministry of Corporate Affairs
1. Any document, return or statement, etc. which is required to file with the MCA-21 irrespective of its due date, there will be no additional fee charged for the late filing during the said period (From 1st April to 30th September 2020). It will also help companies to reduce the compliance burden, including the financial load of companies/ LLPs at large, but also empower long-standing non-compliant companies/ LLPs to make a ‘fresh beginning’;
2. The compulsory necessity of holding meetings of the Board of the companies within prescribed interim gave in the Companies Act (120 days), 2013, will bw reached out by a time period of 60 days till next two quarters i.e., till 30th September;
3. Applicability of Companies Auditor’s suited from the financial year 2020-2021 rather than from 2019-2020 notified prior. This will altogether facilitate the pressure on companies & their auditors for the year 2019-20.
4. As per Companies Act, 2013, Independent Directors are needed to hold at least one meeting without the attendance of Non-independent directors and board members. For the year 2019-20, if the IDs of an organization have not had the option to hold even one meeting, the same shall not be seen as a violation.
5. The requirement to make a Deposit stock of 20% of deposits maturing during the budgetary year 2020-21 preceding 30th April 2020 will be permitted to be consented with till 30th June 2020.
6. The requirement to invest 15% of debentures maturing during a specific year in indicated instruments preceding 30th April 2020, might be done as before 30th June 2020.
7. Companies that are newly incorporated are required to file a declaration for Commencement of Business that is INC-20A e-form within 6 months of incorporation. But due to the outbreak of COVID-19, an additional time of 6 more months will be permitted.
8. Under Section 149 of the Companies Act, non-compliance of least residency in India for a period of at least 182 days by at least one director of every company or organization shall not be treated as a violation.
9. Due to the rising financial break faced by most of the companies because of the large-scale economic trouble caused by COVID 19, it has been chosen to raise the limit of default under section 4 of the IBC 2016 to Rs 1 crore (from the current edge of Rs 1 lakh). This will all around forestall activating of insolvency or indebtedness procedures against MSMEs. If the present circumstances continue beyond 30th of April 2020, we may consider suspending sections 7, 9 and 10 of the IBC 2016 for a time period of 6 months in order to prevent companies at large from being forced into bankruptcy proceedings in such force majeure reasons of default.
10. Precise notifications/circulars regarding all of the above points and information shall be issued by the Ministry of Corporate Affairs itself.
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