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Corporate Laws Central Ministry of Corporate Affairs Companies Act, 2013

COVID-19 - Relaxations under Companies Act, 2013 and Limited Liability Partnership Act, 2008

24-Mar-2020 | General Circular No. 11/ 2020

The following relaxations have been notified by MCA pursuant to COVID-19 outbreak:

1. No additional fees shall be charged for late filing in respect of any document, return, statement etc. required to be filed in the MCA-21 Registry, irrespective of its due date by companies/ LLPs during 01st April 2020 to 30th September 2020.
2. The gap between 2 consecutive meetings of the Board may extend to 180 days instead of 120 days, till next two quarters i.e., till 30th September.
3. The Companies (Auditor's Report) Order,2020 shall be made applicable from the financial year 2020-2021 instead of being applicable from the financial year 2019-2020 notified earlier.
4. If the independent Directors (IDs) of a company are not able to hold a meeting required to be held without the attendance of Non-independent directors and members of management, the same shall not be viewed as a violation. The IDs, however, may share their views amongst themselves through telephone or e-mail or any other mode of communication, if they deem it to be necessary.
5. Requirement under section 73(2)(c) of CA-13 to create the deposit repayment reserve of 20% of deposits maturing during the financial year 2020-21 before 30th April 2020 is allowed to be complied with till 30th June 2020.
6. Requirement under rule 18 of the Companies (Share Capital & Debentures) Rules, 2014 to invest or deposit at least 15% of amount of debentures maturing in specified methods of investments or deposits before 30th April 2020, is allowed to be complied with till 30th June 2020.
7. Extension of 180 days has been allowed to newly incorporated for filing a declaration for Commencement of Business within 180 days of incorporation under section 10A of the CA-13.
8. 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 CA-13 shall not be treated as a non-compliance for the financial year 2019-20.

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