Special measures due to outbreak of covid-19 under Companies act, 2013 (CA 2013) and Limited Liability Partnership Act, 2008

MCA vide its circular no. 11/2020 dated 24th March, 2020 clarified about the reliefs being provided to Companies and Limited Liability Partnerships (LLPs) due to outbreak of COVID-19 to lessen the burden of compliance as follows:

S.NO. PURPOSE RELIEF
1. No Additional Fees to be charged with respect of any document, return, statement etc to be filed in the MCA-21 Registry. From 1st April, 2020 till 30th September, 2020

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Fresh Start for Long-Standing Non-Compliant Companies/ LLPs (Explained Individually in my other Articles).

2. Conduct of Board Meetings u/s 173 of Companies Act, 2013. Gap Between 2 consecutive meetings is 120days 180days till the next 2 quarters i.e., 30th September, 2020.
3. The Companies (Auditors Report) Order, 2020. Applicable from the Financial Year 2019-2020 2020-2021.
4. Independent Directors (IDs) as per Para VII (1) of Schedule IV of the Companies Act, 2013. If the meeting of IDs wasn’t held for the Financial Year 2019-2020, wont be considered as a violation. However, their views may be shared through phone or e-mail or any other mode of communication, if they deem it to be necessary.
5. Creation of Deposit Repayment Reserve u/s 73(2)(c) of Companies Act, 2013. For 20% of Deposits maturing during the Financial Year 2020-2021 before 30th April, 2020 may be complied till 30th June, 2020.
6. Rule 18 of the Companies (Share Capital & Debentures ) Rules, 2014. To invest or deposit atleast 15% of amount of Debentures maturing in specified methods of investments or deposits before 30th April, 2020 may be complied till 30th June, 2020.
7. Declaration for Commencement of Business u/s 10A of Companies Act, 2013 by Newly Incorporated Companies. Within 180days of Incorporation

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An Additional period of 180days = 360days.

8. Minimum Residency by atleast 1 director of every Company for 182days u/s 149 of Companies Act, 2013. For the Financial Year 2019-2020, shall not be treated as a Non-Compliance.

DISCLAIMER: This is a knowledge sharing initiative based upon the relevant provisions. In no event I shall be liable for any direct or indirect result of this Article.

(Author – Deepna Babal, Company Secretary from New Delhi can be contacted at [email protected]).

Author Bio

Qualification: CS
Company: Textile Industry and an Export House
Location: DELHI, New Delhi, IN
Member Since: 11 Feb 2020 | Total Posts: 5

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