More EASE for PEACE expected from MCA

Ministry of Corporate Affairs (MCA) has acted very proactively in issuing number of Circulars amending Rules or relaxing time for compliances since March 19, 2020 during Pandemic COVID-19 and lock down announced in India. The Secretary to MCA assured businesses in providing additional support to help them meet their legal responsibilities.

However, there are few more relaxations necessitate from MCA as many companies are unable to observe the regulations and compliances under the Companies Act, 2013 (“the Act”).

Following are few more relaxations expected from MCA at its earliest:

1. Registrar of Companies to temporarily pause the strike off process to prevent companies being dissolved and Not considered as violation if, any newly formed company or company which has changed the registered office recently fail to affix the name and address outside its registered office and other place of business of the Company, as required under Section 12 of the Act.
2. Private Placement application money can be received in the companies current account instead of opening a Separate Bank Account and use of funds before filing Form PAS -3 Return of Allotment as required under Section 42 of the Act.
3. Payment of dividend amount from current account of the company without opening a separate bank account .
4. Allowing filing MGT 14 form beyond 300 days and charge documents without applying with Central Government for condonation of delay.
5. Allowing appointment of new Director without DIN, subject to getting DIN in 30 days from the date the lock out is over ( Refer section 152 of the Act).
6. Allow affixing of either Digital Signatures or mention as Sd/- ( signed and name of the Director or authorized person ) in any document to be attached to any forms or returns while filing with MCA.
7. Extension of time in filing any Petition or Application before the National Company Law Tribunal as per the Act.
8. Extension of time for Redemption or Conversion of Preference Shares or Debentures or Repayment or Renewal of Deposits as per the Act.
9. Extension of time for allowing Inspection requested by the members or supply of document copy to the member.
10. Extension of time for issuance of new securities or transfer of any securities.
11. Extension of time for Signature of Minutes and /or entry in the Statutory Register as required under the Act.
12. Extension of time for Demat of shares of the Promoter or entire holding of public companies.
13. Extension of time in holding the Annual General Meeting this year 2020 for further period of three months without make application for such extension.
14. Relaxation in threshold limit of Net Profit criterial for CSR spent for next one or two financial years considering the liquidity crunch and financial difficulties which may be faced by many companies due to the Pandemic COVID-19.