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:
|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
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
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]).