Relaxations Under Companies Act, 2013- Covid-19 Pandemic

RELAXATIONS UNDER COMPANIES ACT, 2013- COVID-19 PANDEMIC

Due to resurgence of Covid- 19 pandemic and after considering requests received from Stakeholders Ministry of Corporate Affairs (‘MCA’) has decided to provide various relaxations to Companies and Limited Liability Partnerships. Below are few relaxations that has been provided by MCA:

1. RELAXATION ON LEVY OF ADDITIONAL FEES IN FILING OF CERTAIN FORMS UNDER THE COMPANIES ACT, 2013 AND LLP ACT, 2008

Ministry of Corporate Affairs (‘MCA’) pursuant to General Circular No. 06/2021 dated 3^rd May, 2021 decided to provide relaxation to Companies and Limited Liability Partnerships by enabling them to file belated returns/forms (Except Charge Related Forms) that would be due for filing during 1^st April, 2021 to 31^st May, 2021 on MCA 21 electronic registry without charging any additional fees on account of any delay till 31^st July, 2021 and only normal fees shall be payable.

Key Highlights

• The benefit extends to both Companies and Limited Liability Partnerships registered under Companies Act, 2013 and LLP Act, 2008.
• Only forms that would be due for filing during 1^st April, 2021 to 31^st May, 2021 can be filed after their due date without any additional fees upto 31^st July, 2021.

For Example: Annual Return of LLP is to be filed in Form 11 within sixty days from the closure of financial year, therefore the due date for filing the said form is 30^th May, 2021. In this case Form 11 can be filed upto 31^st July, 2021 without any additional fees.

• Relaxation under this Circular is not granted to charge related forms i.e.

1. Form CHG-1: Application for Creation, modification of charge,

2. Form CHG-4: Particulars for satisfaction of charge and

3. Form CHG-9: Registration of creation or modification of charge for debentures or rectification of particulars filed in respect of creation or modification of charge for debentures.

GAP BETWEEN TWO BOARD MEETINGS UNDER SECTION 173 OF COMPANIES ACT, 2013

In order to understand this relaxation, we must go through section 173 of Companies Act, 2013 which talks about how meetings of Board of Directors should be conducted, gap between two Board meetings, Notice of Board meetings etc.

EXTRACT OF SECTION 173(1)

“As per section 173(1) of Companies Act, 2013 every company shall hold the first meeting of the Board of Directors within thirty days of the date of its incorporation and thereafter hold a minimum number of four meetings of its Board of Directors every year in such a manner that not more than one hundred and twenty days shall intervene between two consecutive meetings of the Board.”

RELAXATION PROVIDED

• Ministry of Corporate Affairs (‘MCA’) pursuant to General Circular No. 08/2021 dated 3^rd May, 2021 decided that the requirement of holding meetings of Board of the companies within the interval provided in section 173 of the Companies Act, 2013 (120 days) stands extended by period of Sixty days for first two quarters of Financial Year 2021-2022.
• The gap between two consecutive meetings of the Board may extend to 180 days during the Quarters- April to June 2021 and Quarters –July to September, 2021, instead of 120 days as required under section 173 of the Companies Act, 2013.

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