Saturday, March 28, 2020

Relief measures by MCA relating to Statutory and Regulatory compliance in view of COVID-19 outbreak


Relief measures by MCA relating to Statutory and Regulatory compliance in view of COVID-19 outbreak

NO ADDITIONAL FEES 

No Additional Fees need to be paid during a Moratorium Period for pending documents to be filed with MCA  between 1-04-2020 to 30-08-2020

You can click the following video link to watch the video on the subject:




No additional fees shall be   for late filing during a moratorium period from 01st April to 30th September 2020

No additional fee in respect of any document return statement  required to be filed in the MCA-21 Registry

Documents irrespective of its due date which will not only reduce the compliance burden including financial burden of companies/ LLPs at large, but also enable long-standing non-compliant companies/ LLPs to make a ‘fresh start’;

Interval for convening Board Meetings have been Relaxed

The mandatory requirement of holding meetings of the Board of the companies within prescribed interval provided in the Companies Act (120 days), 2013, shall be extended by a period of 60 days till next two quarters i.e., till 30th September;

Applicability CARO 2020 will be wef 2020-2021

 Applicability of Companies (Auditor’s Report) Order, 2020 shall be made applicable from the financial year 2020-2021 instead of from 2019-2020 notified earlier. This will significantly ease the burden on companies & their auditors for the year 2019-20.

Attending a Board Meeting by Independent Directors

As per Schedule 4 to the Companies Act, 2013, Independent Directors are required to hold at least one meeting without the attendance of Non-independent directors and members of management. For the year 2019-20, if the IDs of a company have not been able to hold even one meeting, the same shall not be viewed as a violation.


Relaxation as regards to Deposit  Reserve

Requirement to create a Deposit reserve of 20% of deposits maturing during the financial year 2020-21 before 30th April 2020 shall be allowed to be complied with till 30th June 2020.

Relaxation to Debentures Investment

Requirement to invest 15% of debentures maturing during a particular year in specified instruments before 30th April 2020, may be done so before 30th June 2020.

Commencement of Business Requirement period has been extended

Newly incorporated companies are required to file a declaration for Commencement of Business within 6 months of incorporation. An additional time of 6 more months shall be allowed.

Resident Requirement of a director

Non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 of the Companies Act, shall not be treated as a violation.

Minimum threshold for initiation of Insolvency action under section 9 of IBC from Rs 1 lakh to Rs 1 Crore now.

Due to the emerging financial distress faced by most companies on account of the large-scale economic distress caused by COVID 19, it has been decided to raise the threshold of default under section 4 of the IBC 2016 to Rs 1 crore (from the existing threshold of Rs 1 lakh). This will by and large prevent triggering of insolvency proceedings against MSMEs. If the current situation continues beyond 30th of April 2020, we may consider suspending section 7, 9 and 10 of the IBC 2016 for a period of 6 months so as to stop companies at large from being forced into insolvency proceedings in such force majeure causes of default.

MCA Announces Complete Shutdown Of Offices For 21 Days

MCA announces shutdown of all its offices, including its field offices, statutory and autonomous bodies, for a period of 21 days or until further orders, starting March 25, 2020, in view of Govt. guidelines for complete lockdown owing to COVID-19 health hazard; States that the officers/employees shall continue to work from home and will be available on telephone and other means of communication: MCA

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