Ministry of Corporate Affairs Relaxation

Thursday, March 19, 2020

Companies (Meetings of Board and its Powers) Amendment Rules, 2020

Relaxation to the requirement of physical presence of directors in Board Meeting, considering the need to take precautionary steps to overcome the outbreak of the corona virus (Covid-19). The amendment provides temporary relaxation, till 30^th June, 2020.

The link for the aforesaid Notification is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/Rules_19032020.pdf

Declaration to Central Government in Form NDH-4

The Nidhi Companies has to apply to the Central Government for updation of Nidhi company status/declaration in e-Form NDH-4. This initiative has been made in order to make regulatory regime for Nidhi Companies more effective and also to accomplish the objectives of transparency & investor friendliness in corporate environment of the country.

The link for the aforesaid notice is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/Nidhi_19032020.pdf

Monday, March 23, 2020

Clarification on Spending of CSR Funds for Covid-19

The spending of CSR funds by the Companies spending for COVID-19 under item nos. (i) and (xii) of Schedule VII is eligible as CSR activities.

The link for the said Circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Covid_23032020.pdf

Tuesday, March 24, 2020

Special Measures under Companies Act, 2013 and Limited Liability Partnership Act, 2008 in view of Covid-19 Outbreak

In view of COVID-19 outbreak in order to support and enable Companies and LLPs in India to focus on taking necessary measures to address the COVID-19 threat, including the economic disruptions caused by it, the following measures have been implemented by the MCA to reduce their compliance burden and other risks.

The link for the aforesaid Circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Circular_25032020.pdf

Saturday, March 28, 2020

Clarification on Spending of CSR Funds for Covid-19

The PM-CARES Fund has been set up to provide relief to those affected by any kind of emergency or distress situation and any contribution made to the PM CARES Fund shall qualify as CSR expenditure under the Companies Act 2013.

The link for the aforesaid office memorandum is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/Circular_29032020.pdf

Monday, March 30, 2020

Companies Fresh Start Scheme, 2020

The Government of India puts efforts to provide relief to defaulting companies to make good any filing related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity. In order to facilitate all the defaulting companies registered in India to make a fresh start on a clean slate.

The link for the aforesaid Circular is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/Circular12_30032020.pdf

LLP Settlement Scheme, 2020 – Modified

In order to provide relief to defaulting LLPs registered in India to focus on taking necessary measures to address COVID-19 threat and to reduce their compliance burden.

The link for the aforesaid Circular is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/Circular13_30032020.pdf

Wednesday, April 08, 2020

Relaxation in Conducting Extra Ordinary General Meeting Through Video Conferencing

Relaxation for holding Extra-Ordinary General meeting (not Annual General meeting) of members of the company through video conferencing (VC) or other audio-visual means (OAVM) till June 30, 2020 or till further order whichever is earlier.

The links for the aforesaid Circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Circular14_08042020.pdf

Friday, April 10, 2020

FAQs on Corporate Social Responsibility

The Circular has provided various clarification in the form of FAQs on the contributions made in certain fund will be treated as CSR contribution or not.

The link for the aforesaid Circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Notification_10042020.pdf

Monday, April 13, 2020

Relaxation in Filing Forms U/S 124 And 125 of the Companies Act, 2013

MCA has noted that there are difficulties in complying with the procedures relating to transfer of money remaining unpaid or unclaimed for a period of 7 years in terms of provisions, the relaxation is already provided to file the forms without an additional fee levied till September 30, 2020.

The link for the aforesaid Circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Circular16_13042020.pdf

Relaxation in Conducting Extra Ordinary General Meeting Through Video Conferencing

MCA has further issued the clarification on various difficulties faced by the Company in serving Notice for conducting EGM and gave more clarity on modalities/mechanism to follow while conducting EGM or transacting items through Postal Ballot without conducting EGM.

The links for the aforesaid Circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Circular17_13042020.pdf

Tuesday, April 21, 2020

Relaxation in Holding on Annual General Meeting by Companies whose Financial Year Ended on 31st December, 2019

Relaxation to the Companies whose financial year (other than first financial year) has ended on 31st December, 2019, to hold their Annual General Meeting (AGM) for such financial year within a period of nine months from the closure of the financial year (i.e. by 30th September, 2020), the same shall not be viewed as a violation.

The link for the aforesaid Circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Circular18_21042020.pdf

Wednesday, April 22, 2020

Period/Days of Extension for Names Reserved and Resubmission of Forms

Considering the difficulties faced during lockdown period, the names expiring any day between March 15, 2020 to May 03, 2020 would be extended by 20 days beyond May 03, 2020. Also, the resubmission falls between March 15, 2020 to May 03, 2020 would be extended by additional 15 days beyond May 03, 2020.

The link for the aforesaid Notification is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Extension_22042020.pdf

Thursday, April 30, 2020

Extension for filing of Form NFRA-2

MCA has extended the time limit for filing of Form NFRA-2 for the reporting period F.Y. 2018-19. The said period will be 210 days from the date of deployment of this form on NFRA website.

The link for the aforesaid Notification is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Circular19_30042020.pdf

Tuesday, May 05, 2020

Clarification on Holding of AGM Through Video conferencing or Other Audio-Visual Means

Relaxation to Companies to conduct the Annual General Meeting (AGM) of their members through Video Conferencing (VC) or Other Audio Visual Means (OAVM), during the calendar year 2020 which the Companies are required to conduct as per Section 96 of the Companies Act, 2012 ( the Act) , subject to the fulfilment of various requirements.

The link for the above notification is as below:

http://www.mca.gov.in/Ministry/pdf/Circular20_05052020.pdf

Monday, May 11, 2020

Clarification for Dispatch of Notice of Right Issues Opening up to July 31, 2020

MCA has clarified that, in case of listed companies, for rights issues opening upto 31stJuly, 2020 inability to dispatch the notice to its shareholders through registered post or speed post or courier would not be viewed as violation.

The Link for aforesaid circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Circular21_11052020.pdf

Further Extension for Names Reserved and Resubmission of Forms

Considering the difficulties faced during lockdown period, the names expiring any day between March 15, 2020 to July 31, 2020 would be extended by 20 days beyond July 31, 2020. Also, the resubmission falls between March 15, 2020 to July 31, 2020 would be extended by additional 15 days beyond July 31, 2020.

The link for the aforesaid Notification is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Extension_22042020.pdf

Tuesday, May 26, 2020

Amendment of item no.(viii) in the schedule vii of the Companies act,2013

‘PM CARES Fund’ as an eligible CSR expenditure under item (viii) effective from March 28, 2020.

The link for the aforesaid Notification is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Notice_27052020.pdf

Friday, June 05, 2020

The Companies (Share Capital and Debentures) Amendment Rules, 2020

The Companies (Share Capital and Debentures) Amendment Rules, 2020 and amendment for start -up company and listed companies, this is to conserve cash with the company.

The Link for aforesaid notification is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/Rule_08062020.pdf

Monday, June 15, 2020

Extension of time for convening EGM through VC/OAVM till 30th September 2020

MCA has further extended the relaxation which was given earlier till June 30, 2020 is now protracted upto September 30, 2020 for convening the Extra Ordinary General Meeting (EGM) of its members through VC/OAVM or transacting items through Postal Ballot.

The Link for aforesaid circular is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/Circular22_15062020.pdf

Wednesday, June 17, 2020

Scheme for relaxation of time for filing Charge related forms under the Companies Act, 2013

MCA has notified a Scheme relaxing delay in filing of Charge related documents with the Registrar of Companies. MCA has now introduced a Scheme relaxing on additional fees for delay in filing documents for Charges “Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013″.

The Link for aforesaid circular is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/Circular23_17062020.pdf

Friday, June 19, 2020

Extension of time for creation of deposit repayment reserve and to invest or deposit amount of debentures

MCA has further extended till September 30, 2020 which was till June 30, 2020 for the requirement to create the deposit repayment reserve and for the requirement to invest or deposit.

The Link for aforesaid circular is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/Circular24_20062020.pdf

Tuesday, June 23, 2020

Board can have meeting through VC facility-The Companies (Meetings of Board and its Powers) second amendment rules, 2020

MCA has allowed the Companies to pass the matters which are generally not allowed to pass by way of Circular Resolution till September 30, 2020.

The Link for aforesaid notification is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/Rule1_25062020.pdf

Independent Director-The Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2020

MCA has extended the time limit for inclusion of name of Independent Director in data bank of Independent Director from “seven months” to “ten months” that is till September 30, 2020.

The Link for aforesaid notification is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/Rule2_25062020.pdf

CSR spends – Amendment in Schedule VII of Companies Act, 2013

MCA has notified that spending amount for Central Armed Police Forces (CAPF) and Central Para Military Forces (CPMF) veterans, and their dependents including widows is covered as CSR activities in Schedule VII of the Act.

The Link for aforesaid notification is as mentioned below:

http://egazette.nic.in/WriteReadData/2020/220133.pdf

Monday, June 29, 2020

The Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2020

A Government Company or WoS of a Government Company at the time of filing of form STK-2 submit a duly notarized Indemnity Bond in Form STK-3A (Format of Indemnity Bond), given by an authorized representative, not below the rank of Under Secretary or its equivalent.

The Link for aforesaid rule is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/Rule3_30062020.pdf

Monday, July 06, 2020

Extension of the last date of filing of Form NFRA-2

MCA has extended the time limit for filing of Form NFRA-2 for the reporting period F.Y. 2018-19. The said period will be 270 days from the date of deployment of this form on NFRA website.

The link for the aforesaid circular is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.26_06072020.pdf

Friday, July 24, 2020

The Companies (Indian Accounting Standards) Amendment Rules, 2020

MCA has issued rules to amend the Companies (Indian Accounting Standards) Rules, 2015. The changes are made under following Indian Accounting Standards:

Ind AS-103 (Business Combinations)
Ind AS-107 (Financial Instruments: Disclosures)
Ind AS-109 (Financial Instruments)
Ind AS-116 (Leases)
Ind AS-1 (Presentation of Financial Statements)
Ind AS-8 (Accounting Policies, Changes in Accounting Estimates and Errors)
Ind AS-10 (Events occurring after Reporting Period)
Ind AS-34 (Interim Financial Reporting)
Ind AS-37 (Provisions, Contingent Liabilities and Contingent Assets)

The link for the aforesaid Notification is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Rule_24072020.pdf

Establishment of a new Special Court in the State of Assam

MCA notified that the Court of Chief Judicial Magistrate, Kamrup (M) at Guwahati, Assam is designated as Special Court for the purposes of providing speedy trial of offences under the Companies Act, 2013 in the state of Assam.

The link for the aforesaid Notification is mentioned below:

http://www.mca.gov.in/Ministry/pdf/NotificationCompAct_28072020.pdf

Tuesday, July 28, 2020

The National Company Law Tribunal and National Company Law Appellate Tribunal (Procedure for Investigation of misbehavior or incapacity of Chairperson, President and other members) Rules, 2020

MCA has notified rules for investigating complaints alleging any definite charges of misbehavior or incapacity to perform the functions of the office against any Chairperson, President and Member of National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT).

The link for the aforesaid Notification is mentioned below:

http://egazette.nic.in/WriteReadData/2020/220734.pdf

Monday, August 03, 2020

Extension of time for dispatch of notice under section 62(2) of Companies Act, 2013 for Right issues opening by the Listed Companies upto 31st December, 2020

MCA clarified that, in case of listed companies, for rights issues opening upto 31st December, 2020 inability to dispatch the notice to its shareholders through registered post or speed post or courier would not be viewed as violation of section 62(2) of the Companies Act, 2013.

The link for the aforesaid Circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.25_03082020.pdf

Monday, August 17, 2020

Clarification on extension of Annual General Meeting (AGM) for the financial year ended as at 31.03.2020- Companies Act, 2013-reg.

MCA issued a clarification on extension of Annual General Meeting (AGM) for the Financial Year ended as at March 31, 2020. The Companies which are unable to hold their AGM for the F.Y. ended on 31 March, 2020, such Companies are advised to file their applications in Form No. GNL-1 for seeking extension of time in holding of AGM for 2020, with the concerned Registrar of Companies (RoC) on or before September 29, 2020 and the RoC are advised to consider all such applications liberally in view of the hardships faced by the stakeholders and to grant extension for the period as applied for (upto three months) in such applications.

The link for the aforesaid Circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.28_17082020.pdf

Monday, August 24, 2020

Amendment in item no. (ix) in Schedule VII of the Companies Act, 2013

MCA has allowed certain expenditure made by the Company as CSR Expenditure, if the Contribution is given:

for research and development projects in the field of science, technology, engineering and medicine under item no. (ix) (a) and
to Department of Biotechnology (DBT); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) in (ix) (b) is inserted.

The link for the aforesaid Notification is mentioned below:

http://www.mca.gov.in/Ministry/pdf/NotificationCompAct_26082020.pdf

The Companies (Corporate Social Responsibility Policy) Amendment Rules, 2020

MCA Notified the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2020 and made the amendment in the Companies (Corporate Social Responsibility Policy), Rules, 2014.

“CSR Policy” relates to the activities to be undertaken by the company in areas or subjects specified in Schedule VII to the Act and the expenditure thereon, excluding activities undertaken in pursuance of normal course of business of a company;

Provided that any company engaged in research and development activity of new vaccine, drugs and medical devices in their normal course of business may undertake research and development activity of new vaccine, drugs and medical devices related to COVID-19 for financial years 2020-21, 2021-22 and 2022-23 subject to the conditions.

The link for the aforesaid Notification is mentioned below:

http://www.mca.gov.in/Ministry/pdf/NotificationCompAct_26082020.pdf

Friday, August 28, 2020

Notification of Provision of Clause (II) Of Section 23 of the Companies (Amendment) Act, 2017

MCA Notified the provision of clause (ii) of section 23 of the Companies (Amendment) Act, 2017, and accordingly amendment is made in existing provisions u/s 92(3) of the Companies Act, 2013.

Every company shall place a copy of the annual return on the website of the company, if any, and the web-link of such annual return shall be disclosed in the Board’s report.

The link for the aforesaid Notification is mentioned below:

http://www.mca.gov.in/Ministry/pdf/NotificationCompAct_29082020.pdf

The link for the Companies (Amendment) Act, 2017 is mentioned below:

http://www.mca.gov.in/Ministry/pdf/CAAct2017_05012018.pdf

The Companies (Management and Administration) Amendment Rules, 2020.

MCA Notified the Companies (Management and Administration) Amendment Rules, 2020 and made the amendment in the Companies (Management and Administration) Rules, 2014 by adding proviso to Rule 12 (1).

Existing rule says that the extracts of the annual return to be attached with the Board’s Report shall be in Form No. MGT 9. Now after amendment a company shall not be required to attach the extract of the annual return with the Board’s Report in Form MGT 9, in case the web link of such annual return has been disclosed in the Board’s Report in accordance with sub-section (3) of section 92 of the Companies Act, 2013.”

The link for the aforesaid Notification is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Rule_29082020.pdf

Thursday, September 10, 2020

Relaxation of additional fees and extension of last date of filing of CRA-4 (form for filing of cost audit report) for FY 2019-20 under the Companies Act, 2013

In view of extra ordinary disruption caused due to the pandemic, it has been decided that if cost audit report for F.Y 2019-20 by the cost auditor to the Board of Directors of the Companies is submitted by 30^th November, 2020, then the same would not be viewed as violation of rule 6(5) of Companies (cost records and audit), Rules, 2014.

The link for the aforesaid Circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/circular_10092020.pdf

Monday, September 07, 2020

The Companies (Acceptance of Deposits) Amendment Rules, 2020

MCA has notified the Companies (Acceptance of Deposits) Amendment Rules, 2020 and made few amendments for Startup Companies.

The link for the aforesaid Notification is mentioned below:

http://www.mca.gov.in/Ministry/pdf/Rule_08092020.pdf

Tuesday, September 08, 2020

Order of Registrar of Companies (RoC) dated September 08, 2020 granting General Extension of time for holding AGM to all the Companies for FY 2019-20 till December 31, 2020

The Registrar of Companies (RoC) of each State had issued the Order granting general relaxation and given extension of time till 31st December 2020 for holding AGM for FY ended on March 31, 2020.

The link for the aforesaid Order of all RoC is mentioned below:

http://www.mca.gov.in/MinistryV2/extensionofagm.html

Thursday, September 10, 2020

Relaxation of additional fees and extension of last date of filing of CRA-4 (form for filing of cost audit report) for FY 2019-20 under the Companies Act, 2013

The link for the aforesaid Circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/circular_10092020.pdf

Friday, September 18, 2020

Extension of tenure of Company Law Committee

MCA has ordered that Company Law Committee (“CLC”) constituted on September

18, 2019 for a term of 1 year be extended to one more year that is till September 17, 2021.

The link for the aforesaid order is mentioned below:

http://www.mca.gov.in/Ministry/pdf/ExtensionNotice_17092020.pdf

Monday, September 28, 2020

Extension of time for Company Fresh Start Scheme, 2020 (CFSS)

MCA has extended the time limit for Company Fresh Start Scheme, 2020 (“CFSS 2020”) till December 31, 2020.

The Link for aforesaid circular is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.30_28092020.pdf

Extension of time for LLP Settlement Scheme, 2020

MCA has extended time limit of LLP Settlement Scheme, 2020 till December 31, 2020.

The Link for aforesaid circular is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.31_28092020.pdf

Extension of time of Scheme for relaxation of time for filing forms related to

creation or modification of charges under the Companies Act, 2013

MCA has extended time limit of Scheme of relaxation of time for filing forms related to creation or modification of charges till December 31, 2020.

The Link for aforesaid circular is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.32_28092020.pdf

Extension of time for convening EGM through VC/OAVM till December 31, 2020

MCA has extended the relaxation to Companies for convening Extra Ordinary General Meeting (EGM) of its members through VC/OAVM or transacting items through Postal Ballot, without being physical present upto December 31, 2020.

The Link for aforesaid circular is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.33_28092020.pdf

Board can have meeting through VC facility —–The Companies (Meetings of Board and its Powers) Third Amendment Rules, 2020

MCA had notified amendment in the Companies (Meeting of Board and its Powers) Third Amendment Rules, 2020 and allowed the Companies to pass certain matters which are generally not allowed to be dealt in any meeting held through video conferencing or other audio-visual means till December 31, 2020.

The Link for aforesaid notification is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/ThirdAmendmentRules_29092020.pdf

Independent Director —The Companies (Appointment and Qualification of

Directors) Fourth Amendment Rules, 2020

MCA had notified amendment in The Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2020 (“The 4^th Amendment Rules, 2020”) and extended the time limit for inclusion of name of Independent Director in data bank of Independent Director from “ten months” to “thirteen months” that is till December 31, 2020.

The Link for aforesaid notification is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/FourthAmendmentRules_29092020.pdf

Notification of Companies Amendment Act, 2020 (“CAA 2020”)

Companies Amendment Bill, 2020 has received the Assent of the President of India and become the Companies Amendment Act, 2020 (CAA 2020) which has amended the Companies Act, 2013 (CA 2013). Companies Amendment Bill, 2020 was passed in Lok Sabha on September 17, 2020 and in Rajya Sabha on September 22, 2020.

The Link of notification of Companies Amendment Act, 2020 is as below:

http://www.mca.gov.in/Ministry/pdf/AmendmentAct_29092020.pdf

Tuesday, September 29, 2020

Extension of time for creation of deposit repayment reserve and to invest or deposit amount of debentures till December 31, 2020

MCA extended the time limit for creation of Deposit Repayment Reserve and to invest or deposit amount of Debentures as mentioned below till December 31, 2020.

The Link for aforesaid circular is as below:

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.34_29092020.pdf

Friday, October 07, 2020

The Companies (Prospectus and Allotment of Securities) Amendment Rules, 2020

MCA has notified the Companies (Prospectus and Allotment of Securities) Amendment Rules, 2020 and inserted a new proviso as mentioned below after 3rd proviso of Rule 14(1) of the Companies (Prospectus and Allotment of Securities) Rules, 2014.

The link for the aforesaid Notification is mentioned below:

http://www.mca.gov.in/Ministry/pdf/SecuritiesAmendmentRules_16102020.pdf

Tuesday, October 20, 2020

Extension of Relaxation from the mandatory residency requirement of 182 days in a year by at least one Director in every Company under the Companies Act, 2013 and LLP Act 2008

MCA extended and clarified that non-compliance of minimum residency in India for a period of at least 182 days in a year, by at least 1 Director in every Company shall not be treated as non-compliance for the financial year 2020-21.

The link for the aforesaid Circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.36_20102020.pdf

Wednesday, November 09, 2020

Extension of time for LLP Settlement Scheme, 2020

MCA has permitted the “Defaulting LLP” to file belated documents, which were due for filing till November 30, 2020.

The Link for aforesaid notification is as mentioned below:

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.37_09112020.pdf

Tuesday, December 01, 2020

Relaxation of additional fees and extension of last date of filing of CRA-4 (form for filing of cost audit report) for FY 2019-20 under the Companies Act, 2013

In view of extra ordinary disruption caused due to the pandemic, it has been decided that if the cost audit report for F.Y 2019-20 is submitted by the cost auditor to the Board of Directors of the Companies by 31^st December, 2020, then the same would not be viewed as violation of rule 6(5) of Companies (cost records and audit), Rules, 2014.

The link for the aforesaid Circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.38_01122020.pdf

Thursday, December 17, 2020

CARO 2020 / The Companies (Auditor’s Report) Second Amendment Order, 2020

Every Report made by the Auditor under section 143 of the Companies Act 2013 on the accounts of every company audited by him, to which the CARO, 2020 applies, for the financial years commencing on or after the 1st April, 2021, shall in addition, contain the matters specified in paragraphs 3 and 4, as may be applicable: Provided this Order shall not apply to the auditor’s report on consolidated financial statements except clause (xxi) of paragraph 3. CARO, 2020 applicability is further differed to from 01 April, 2021 onwards.

The link for the aforesaid Circular is mentioned below:

http://www.mca.gov.in/Ministry/pdf/CompaniesSecondAmdtOrder_22122020.pdf

THE COMPANIES (COMPROMISES, ARRANGEMENTS AND AMALGAMATIONS) SECOND AMENDMENT RULES, 2020

MCA has notified the Companies (Compromises, Arrangements and Amalgamations) Second Amendment Rules, 2020 to further amend the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 in the following manner: –

In rule 2(1) on Definitions the following clause shall be inserted, namely:

“(e) “corporate action” means any action taken by the company relating to transfer of shares and all the benefits accruing on such shares namely, bonus shares, split, consolidation, fraction shares and right issue to the acquirer”.

Rule 26A shall be inserted regarding Purchase of minority shareholding held in demat form.

http://www.mca.gov.in/Ministry/pdf/SecondAmdtRules_18122020.pdf

Friday, December 18, 2020

The Companies (Appointment And Qualification Of Directors) Fifth Amendment Rules, 2020

MCA notified The Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2020 giving certain relaxations to Independent Directors.

Key points of the notification are summarised as under:

Relaxation to take the online proficiency self-assessment test. An individual to pass the test within a period of 2 years from the date of inclusion of their name in the database (earlier it was within a year)
Expanded eligibility criteria for exemption from taking the test, and eased experience criteria for an individual who has served as a Director/KMP for a total period of not less than 3 years (earlier it was 10 years) in certain Public Companies/Body Corporates or in the Organisations specified by the Central Government
The passing criteria for the online proficiency self-assessment test has been reduced to 50% from 60%.

http://www.mca.gov.in/Ministry/pdf/FifthAmdtRules_18122020.pdf

Monday, December 21, 2020

Certain Sections of The Companies Amendment Act, 2020 notified

In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 2020 (29 of 2020), the Central Government hereby appoints the 21st day of December, 2020 as the date on which the few provisions of the said Act shall come into force.

http://www.mca.gov.in/Ministry/pdf/CommencementNotification_24122020.pdf

Thursday, December 24, 2020

Change in Form SH-7 TO Report Change in Authorised Share Capital of the Company

The Companies (Share Capital and Debentures) Second Amendment Rules, 2020 is published on 24^th December 2020. The amendment is change in Form SH-7, which is Notice to Registrar for alteration in Capital.

http://www.mca.gov.in/Ministry/pdf/SecondAmdtRules_24122020.pdf

Validity of name availability for formation of new company

MCA has notified the Companies (Incorporation) Third Amendment Rules, 2020 which shall be effective from 26^th January, 2021. Through this amendment, the Rule has been amended by insertion of new Rule 9A where the Applicant can apply for extension of period for reservation of Name for incorporation of new company (not for change of name of the company). According to Rule 9 (which was amended on 23^rd February 2020) of the Companies (Incorporation) Rules, 2014, an Application for reservation of Name for the company to be made by the Applicant through the web service available at www.mca.gov.in

For the formation of new company file Form SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32) along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014 ; and
For the change of name of existing company file Form RUN (Reserve Unique Name) using web services along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014,
The Registrar, Central Registration Centre (CRC) Manesar, Delhi may either approve or reject it and allow re-submission of such web form within 15 days for rectification of the defects, if any

For Incorporation of new company, the Name is reserved for 20 days and for the change of name of existing company, the Name is reserved for 60 days

Part A of SPICe+ is substituted with new Part A.

http://www.mca.gov.in/Ministry/pdf/ThirdAmdtRules_24122020.pdf

Wednesday, December 30, 2020

The Companies (Meetings of Board and its Powers) Fourth Amendment Rules, 2020

MCA notified the Companies (Meetings of Board and Its Powers) Fourth Amendment Rules, 2020 and allowed the Companies to pass following matters which are generally not allowed to be dealt in any meeting held through video conferencing or other audio visual means till June 30, 2021 (earlier it was allowed till December 31, 2020)

http://www.mca.gov.in/Ministry/pdf/FourthAmdtRules_30122020.pdf

Thursday, December 31, 2020

Relaxation in holding EGM or Postal Ballot till 30^th June 2021

In continuation to the General Circulars No.14/2020 dated 8th April, 2020, No.17/2020 dated 13th April, 2020, No.22/2020 dated 15.06.2020 and No.33/2020 dated 28.09.2020 , MCA has allowed companies to conduct their EGMs through VC or OAVM or transact items through postal ballot in accordance with the framework provided in the aforesaid Circulars upto 30th June, 2021. All other requirements provided in the said Circulars shall remain unchanged.

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.39_31122020.pdf