1. COMPETITION COMMISSION OF INDIA INTRODUCES GREEN CHANNEL

♣ Automatic and faster system of approval of combinations under Green Channel

♣ Under this process, the combination is deemed to have been approved upon filing the notice in the prescribed format. This system would significantly reduce time and cost of transactions.

2. DECRIMINALISATION & PATH BREAKING EASE OF LIVING INITIATIVE UNDER THE COMPANIES (AMENDMENT) ACT, 2020

  • 46 more compoundable offences under the Companies Act, 2013 have been de-criminalised.
  • Direct listing of securities by Indian public companies in permissible foreign jurisdictions Allowed.
  • Private companies which list Non-convertible debt instruments on stock exchanges shall not be regarded as listed companies.
  • Provisions to reduce timeline for completion of rights issues by companies.
  • Lower penalties provided for all defaults under the Companies Act, 2013 for Small Companies, One person Companies, Producer Companies & Start-Ups.
  • Provisions for creation of additional/specialized benches for National Company Law Appellate Tribunal (NCLAT) included. This would speed up disposal of appeals.
  • Provisions relating to Producer Companies (Earlier Part IXA of Companies Act, 1956) included in the Companies Act, 2013.

3. INSOLVENCY& BANKRUPTCY CODE (IBC) AMENDMENT, 2020 (28.12.2019)

  • Amendment Done to Remove certain difficulties being faced during Corporate Insolvency Resolution Process (CIRP) by protecting last mile funding
  • Ensuring supply of essentials for continuation of Corporate Debtor as a going concern during CIRP
  • Clarifying that the licenses, etc. can’t be terminated
  • No liability on Corporate Debtor for an offence committed prior to commencement of CRIP; etc.

4. IBC (SECOND AMENDMENT) ACT, 2020 w.e.f. 05.06.2020

  • Amendment done to provide relief to companies affected by COVID-19 pandemic and to recover from the financial stress without facing immediate threat of being pushed into Insolvency proceedings by providing temporary  suspension of initiation  of CIRP under section 7,9 and 10 of the code
  • Providing Permanent carve-out for the purpose of initiation of CIRP in respect of defaults arising during the suspended period
  • Disallowing the resolution professional from filling application for action against  the directors or partners of the corporate debtor with respect to default arising during the suspended period.

5. SPICe+ & AGILE PRO–A form providing 10 services Name, Certificate of Incorporation, DIN, TAN, PAN, ESIC, EPFO Registration, Bank Account Number, PTEC & PTRC (State of Maharashtra, Karnataka) & GSTIN

SPICe+ and AGILE PRO

  • Integrated Incorporation form offers 10 services by 3 Central Government Ministries/ Departments – Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue (Ministry of Finance), the State Governments of Maharashtra & Karnataka and various banks in a single form.
    • Name
    • Certificate of Incorporation
    • DIN
    • TAN
    • PAN
    • ESIC
    • EPFO Registration
    • Bank Account Number
    • PTEC & PTRC (State of Maharashtra, Karnataka) and
    • GSTIN

SPICe and Agile Pro

6.  RELAXATIONS PROVIDED DUE TO COVID-19

  • Companies Fresh Start Scheme, 2020 launched to provide opportunities to Companies to make good any filing related defaults, regardless of duration of defaults, and make a fresh start as a fully compliant entity.
  • LLPs Settlement Scheme, 2020 also launched for granting similar opportunity to LLPs.
  • Scheme for relaxation of time for filing forms related to creation or modification of charges.
  • Companies (Auditor’s Report) Order, 2020 has been made applicable from the financial year 2020-21 instead of the earlier proposed FY 2019-20
  • Companies allowed to conduct Board Meeting through Video Conference (VC) or other audio visual means for passing resolution in respect matters which were earlier required to be passed in meetings with physical presence of directors
  • Enhance period allowed within which existing independent directors may apply online for inclusion of their names in the databank or independent Directors.
  • Relaxation for FY 2019-20 with regard to holding of at least one meeting by independent Directors without attendance of Non-independent Directors and members of management.
  • Relaxed time line w.r.t. creation/maintenance of deposits payment reserve and debenture redemption reserve.
  • Additional period granted for filing of declaration of commencement of business.
  • Relaxation for FY 2019-20 with regard to requirement of ‘resident director’.
  • Video Conference/Other Audio Visual means allowed for holding of general meetings/transacting business through postal ballot.
  • Relaxation From Dispatch of notices through post/courier w.r.t. holding of meetings/right offers.

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