ICSI Made Representation for extension of timelines due to COVID-19

 115 total views

ICSI Made Representation for extension of timelines due to COVID-19

THE INSTITUTE OF
Company Secretaries of India
IN PURSUIT OF PROFESSIONAL EXCELLENCE
Statutory body under an Act of Parliament
(Under the jurisdiction of Ministry of Corporate Affairs)

MCA: September: 2020

21st September, 2020

Shri Rajesh Verma, IAS
Secretary
Ministry of Corporate Affairs
Government of India
Shastri Bhawan
Dr. Rajendra Prasad Road
New Delhi -110001

Subject: Request for extension of timelines due to COVID-19-reg.

Respected Sir,

As your good self is aware that impact of COVID-19 pandemic has been harsh and the economy is struggling to come out of the crisis. The corporate are facing challenging times to meet the ends and function smoothly. Considering the current crisis, we request your esteemed office to consider further relaxations in due dates of the following compliances:

S. No. MCA Notification/Circular no. Date Detail Suggestion
1 General Circular 11/2020 dated 24th March, 2020 Resident Director

In terms of the provisions of Section 149(3) of the Companies Act, 2013 (“the Act”), every Company shall have at least one Director who stays in India for a total period of not less than one hundred and eighty-two days during the financial year.

MCA vide General Circular no. 11/2020 has relaxed the provision and non­compliance of minimum residency in India, i.e. a minimum residency in India for a period of atleast 182 days by atleast one director under section 149 of the Act, shall not be treated as a non-compliance for the FY 2019-20.

 

This relaxation may also be extended to all companies for the FY 2020-21 as well.

 

2 General Circular 11/2020 dated 24th March, 2020 Time period of holding board meetings

In terms of the provisions of Section 173(1) of the Act, Companies are required to hold a minimum number of four meetings of its Board of Directors every year with a gap of not more than 120 days between 2 consecutive Board Meetings. Under the General Circular 11/2020 dated 24th March, 2020, the requirement has been extended by 60 days and all Companies are permitted to have two Board Meetings with a gap is 180 days.This relaxation is available upto 30th September, 2020.

This relaxation
may be extended up to 31st March, 2021. Further, the
conditions of 4 meetings in a year should also be relaxed to 2 meetings for the FY 20-21.
3. General Circular No. 11/2020 dated 24th March, 2020 Additional Fees

Various special measures were adopted to enable and support Limited Liability Partnerships and companies in view of COVID-19 outbreak. A moratorium period from 1St April, 2020 to 30th September, 2020 was introduced according to which no additional fees was to be charged for late filing during a moratorium period from 1st April to 30th September 2020, in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry, irrespective of its due date.

The moratorium period may be extended upto 31St December,
2020.
4. General Circular No. 13/2020 dated 30th March, 2020 LLP Settlement Scheme, 2020

Special measures adopted to enable and support Limited Liability Partnerships constituted under Limited Liability Partnership Act, 2008 in view of COVID­19 outbreak. The LLP Settlement Scheme was introduced from 1st April, 2020 to 30th September, 2020.

The scheme may extended upto 31st March, 2021.
8 General Circular No. 12/2020 dated 30th March, 2020 Companies Fresh Start Scheme, 2020 (CFSS-2020)

The Companies Fresh Start Scheme
(CFSS) was introduced on the 1st April, 2020 and was open till the 30th September, 2020. The scheme offered one-time opportunity to the defaulting companies’ to file all the pending documents including the annual tiling of the company without charging higher additional fees on any delay with the Ministry

The scheme may extended upto 31st March, 2021.
6 General Circular No. 16/2020 dated 13th April, 2020 Filing of Form IEPF-5

The Ministry vide General Circular No. 16/2020 dated 13th April, 2020 has allowed extension of filing of Form IEPF 5 till 30th September, 2020.

The period may be extended upto 31st December, 2020.
7 General Circular No. 22/2020 dated 15th
June, 2020
Companies to hold EGMs or transact business through postal ballots through VC or OAVM

Ministry has issued General circular No. 14/2020 on 8th April, 2020, 17/2020 on 13th  April, 2020 and 22/2020 on 15th June, 2020 for providing clarifications on passing of ordinary and special resolutions by companies by holding
extraordinary general meetings (EGM) through Video conferencing (VC) or Other Audio Visual Means (OAVM) or passing certain items only through postal ballot without convening general meetings. The framework allowed companies to hold relevant EGMs or transact business through postal ballots upto 30th September, 2020.

This relaxation may be
extended up to 31st March, 2021
8 General Circular No. 23/2020 dated 17th June, 2020 Scheme for relaxation of time for filing forms related to creation or modification of charges under the Act

The scheme is available for Filing of Form No. CHG-1 and Form No. CEIG-9 by a company or a charge holder, where the date of creation / modification of charge: (a) is before 01.03.2020, but the timeline for filing such form had not expired under section 77 of the Act as on 1St March, 2020, or (b) falls on any date between 1st March, 2020 60 30th September, 2020 (both dates inclusive).

The period may be extended upto 31st
December, 2020.
9 General Circular No. 24/2020 dated 19th June, 2020 Creation of Deposit Repayment
Reserve and investment in debenturesThe Ministry of Corporate Affairs vide its General Circular No. 24/2020 dated 19th June, 2020 has extended the timeline for compliance of requirement under Section 73(2)(c) of Companies Act2013 to create the deposit repayment reserve of 20% of deposits maturing during the financial year 2020‑21 before 30th April 2020 has been extended till 30th September 2020.Further, the compliance requirement to invest or deposit at least 15% of the total amount of debentures maturing in specified methods of investments or deposits before 30th April 2020, has been extended till 30th September 2020.
The period may be extended upto 31st December, 2020.
10 G.S.R 395E dated
23rd June, 2020
Holding Board Meeting through Video Conferencing

In terms of the provisions of Rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014, certain matters at the Board Meeting shall not be dealt with in any meeting through video conferencing or other audio-visual means. However, due to pandemic COVID-19, the Ministry vide its notification no. 395E dated 23rd June, 2020 has relaxed the provisions and allowed such matters to be conducted through Video Conferencing till 30th September, 2020.

This relaxation may be extended up to 31st March, 2021.
11 G.S.R 396E dated 23rd June, 2020 Time for Independent Director to apply for inclusion of his name in data bank.

The Ministry vide its Notification no. G.S.R 396E dated 23rd June, 2020 has amended the Companies (Appointment and qualification of Directors) Rules, 2014 and has allowed a period of 10 months (i.e. till 30th September, 2020) within which Independent Directors can apply online to the institute for inclusion of his name in the data bank.

This relaxation may be extended up to 31st March, 2021.
12 Rule 12A of
Companies (Appointment and Qualification of Directors), Rules 2014
Filing of Form DIR-3 KYC

In terms of the provisions of Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014 every individual who holds a Director Identification Number (DIN) as on 31st March of a financial year as per the said Rule shall, submit e-form DIR-3-KYC for the said financial year on or before 30th September of immediate next financial year.

The period may be extended upto 31st December, 2020.

We hope that the above submissions which are on account of the difficulties and hardship faced by the stakeholders due to the pandemic COVID 19 would be considered favorably. We shall be pleased to provide any further information in this regard on hearing from your goodself.

Thanking You,

Yours faithfully,

(CS Asish Mohan)
Secretary

Leave a Comment

Your email address will not be published.