Ministry of Corporate Affairs in assessment of COVID-19 have taken the following measures to reduce the company compliance burden and other risks:
MCA updates due to Covid 19 for Company Compliance: UPDATE NO.1
Non-compliance of minimum residency in India for a period of a minimum of 182 days by a minimum of one director of each company, under Section 149 of the Companies Act, 2013 shall not be treated as a non-compliance for the financial year 2019-20.
MCA updates due to Covid 19 for Company Compliance: UPDATE NO.2
The mandatory requirement of holding meetings of the Board of the companies within the intervals provided in section 173 of the Companies Act, 2013 (CA-13) (120 days) stands extended by a period of 60 days till next two quarters that is, till 30th September, 2020. Accordingly, as a one-time relaxation the gap between two consecutive meetings of the Board may reach to 180 days till subsequent two quarters, rather than of 120 days as needed within the Companies Act, 2013.
MCA updates due to Covid 19 for Company Compliance: UPDATE NO. 3
No additional fees shall be charged for late filing during a suspension period from 1st April to 30th September, 2020, in respect of any document, return, statement etc., required to be filed within the MCA-21 Registry, regardless of its due date, which will not only reduce the compliance burden, including financial burden of companies/ LLPs at large, but also enable long-standing non-compliant companies/ LLPs to form a ‘fresh start’.
MCA updates due to Covid 19 for Company Compliance: UPDATE NO. 4
The Companies (Auditor’s Report) Order,2020 shall be made applicable from the financial year 2020-2021 rather than being applicable from the financial year 2019- 2020 reported earlier. This will significantly ease the burden on companies & their auditors for the financial year 2019-20. A distinct notification has been allotted for this purpose
MCA updates due to Covid 19 for Company Compliance: UPDATE NO. 5
As per Para VII (1) of Schedule IV to the Companies Act, 2013, an Independent Directors (lDs) are required to carry a minimum of one meeting without the attendance of Non-independent directors and members of management.
For the financial year 2019-20, if the lDs of a company have not been able to hold such a meeting, an equivalent shall not be viewed as a violation. The lDs, however, may share their views amongst themselves through telephone or e-mail or the other mode of communication, if they consider it to be necessary.
MCA updates due to Covid 19 for Company Compliance: UPDATE NO. 6
Requirement under section 73(2)(c) of Companies Act, 2013 to make the deposit repayment reserve of 20% of deposits maturing during the financial year 2020-21 before 30th April 2020 shall be allowed to be submitted with till 30th June 2020.
MCA updates due to Covid 19 for Company Compliance: UPDATE NO. 7
Requirement under rule 18 of the Companies (Share Capital & Debentures) Rules, 2014 to take a position or deposit at least 15% of amount of debentures bond maturing in specified methods of investments or deposits before 30th April 2020, may be submitted with till 30th June 2020.
MCA updates due to Covid 19 for Company Compliance: UPDATE NO. 8
Newly incorporated companies are need to file a declaration for Commencement of Business within ‘180 days of incorporation under section 10A of the CA-13.
An extra period of 180 more days is permissible for this compliance.
MCA updates due to Covid 19 for Company Compliance: UPDATE NO. 9
Companies Confirmation of Willingness towards COVID-19 Form MCA has issued Companies Confirmation of Willingness towards COVID-19 Form which may be a simple web form with minimum fields and which may be filed from anywhere. There is no need of DSC and does not involve payment of any fee. Companies/LLPs are advised to use the service w.e.f 23rd March 2020 onwards at the earliest convenience. Stakeholders are requested to please note that there is no fee applicable for FORM CAR (Companies Affirmation of Readiness Towards COVID-19).
MCA updates due to Covid 19 for Company Compliance: UPDATE NO. 10
Considering the necessity to require preventive steps to beat the outbreak of the coronavirus (Covid-19), the Government has in-principle decided to relax the need of holding Board meetings with physical attendance of directors under section 173 (2) r/w rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 for approval of the annual financial statements, Board’s report, etc. Such type of meetings may till 30th June, 2020 be carry through video conferencing or other audio-visual means by properly ensuring compliance of rule 3 of the said rules.
MCA updates due to Covid 19 for Company Compliance: UPDATE NO. 13
Process of Nidhi companies towards compliance of provisions of section 406 of Companies Act, 2013 and Nidhi Rules, 2014 as amended vide Nidhi (Amendment) Rules, 2019 w.e.f 15.08.2019 and general public to take a position in genuine and obedient Nidhi’s only
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