ANNUAL RETURN
1. THE CENTRAL GOVERNMENT REQUIRES COMPANIES TO DISPLAY THEIR ANNUAL RETURNS ON COMPANY WEBSITES FROM 28TH AUGUST 2020. [S.O. 2920(E)]
The Central Government has appointed 28 August 2020 as the date on which the provision of section 23 clause (ii) of the Companies (Amendment) Act, 2017 shall come into force.
In section 92 of the principal Act,—
(ii) for sub-section (3), the following sub-section shall be substituted, namely:—
“(3) Every company shall place a copy of the annual return on the website of the company, if any, and the web-link of such annual return shall be disclosed in the Board’s report”.
As per the said provision, on and from the 28th August, 2020 all the Companies having a website shall place a copy of the Annual Return (MGT-7) on its website. Also, a web link of the Annual Return (MGT-7) must be disclosed in the report of the Board of Directors.
The annual return must be in the prescribed form containing the particulars as they stood on the close of the financial year.
2. THE COMPANIES NO LONGER REQUIRE ATTACHING EXTRACT OF ANNUAL RETURN- MGT-9. [G.S.R. 538(E)]
The Ministry of Corporate Affairs vide its notification dated 28 August, 2020 has published the Companies (Management and Administration) Amendment Rules, 2020 to further amend the Rules, by inserting proviso to rule 12, in sub-rule (1) of Companies (Management and Administration) Rules, 2014.
The Amendment is brought under rule 12 which states that
- the extract of annual return shall be attached with the board report in Form MGT 9.
Provided that a company shall not be required to attach the extract of the annual return with the Board’s report in Form No. MGT.9, in case the web link of such annual return has been disclosed in the Board’s report in accordance with sub-section (3) of section 92 of the Companies Act, 2013.
Therefore, through this amendment companies are no longer required to attach the extracts of Annual Return.
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