Recent Date extensions by Ministry of Corporate Affairs: A compilation

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Recent Date extensions by Ministry of Corporate Affairs: A compilation  

The Ministry of Corporate Affairs has extended the duration of several schemes till 31.12.2020 in view of the continued disruption caused due to the COVID-19 pandemic in certain parts of the country and to provide greater “Ease of Doing business”.

Finance Minister in early 2020, introduced a welcome scheme like Companies Fresh Start Scheme 2020 and LLP Settlement Scheme. It was to be effective from valid from 1 April 2020 to 30 September 2020. It has been extended vide Circular No. 30/2020, 31/2020, 32/2020 and 33/2020 on 28.09.2020 with a view to provide a new opportunity to the existing companies by resolving their defaults with no extra fee payment and regularize their companies.

Overall changes consists of the following:

  1. Extension of Companies Fresh Start Scheme, 2020
  2. Extension of LLP Settlement Scheme, 2020
  3. Scheme for relaxation of time for filing forms related to Creation or Modification of Charges
  4. Allowing companies to conduct their EGM through VC or OAVM or transact items through Postal Ballot as per the framework provided in the MCA circular earlier.
  5. Extension of time within which Independent Directors of companies have to register themselves on the data bank maintained.

The complete compilation of recent circular / notifications are as under:

Nature of Compliance/Scheme Notification No. Date
Companies Fresh Start Scheme, 2020 extended till 31.12.2020 General Circular No. 30/2020 28/09/2020
LLP Settlement Scheme 2020 extended to 31.12.2020 General Circular No. 31/2020 28/09/2020
Relaxation for filing Charge related forms extended till 31.12.2020 General Circular No. 32/2020 28/09/2020
Time for conducting EGMs through VC or OAVM extended till 31.12.2020 General Circular No. 33/2020 28/09/2020

The LLP Settlement, 2020 which was valid from 01.04.2020 to 13.06.2020 and was later extended till 30.09.2020. This Scheme has further extended to 31.12.2020 to enable LLPs to make good their previous defaults. The Scheme for relaxation of time for filling forms related to creation or modification of charges under the Companies Act, 2013, and time for conducting Act, 2013, and the time for conducting EGMs through Video Conference or Other Audio-Visual Means also stand extended till 31.12.2020.

It may be noted that as a result of the receipt of multiple representations from various stakeholders for granting this time opportunity to make the default good, the Ministry of Corporate Affairs (MCA) had vided circular no.12/20 has notified a scheme for the companies registered in India who have defaulted in filing necessary documents & returns in the past, giving them an opportunity to correct their mistakes without having to go through any prosecution or payment of any hefty sum as penalty. The said scheme was originally made effective from 01.04.2020 and has been extended till 31.12.2020 in effect.

The LLP Settlement Scheme 2020 was allowing One- Time con donation of delay in filing statutory documents with the Registrar. It was announced in pursuance of the government’s aim for providing greater ease of business for the businessmen country & aimed at providing significant relief and a one – time window for LLPs to comply by the law and conduct business accordingly.

Similarly, the CFSS scheme shall be available for the companies who have defaulted in filing necessary documents, statements & returns on the MCA 21 registry in compliance with the necessary provisions of the Companies Act 2013. It was also a one – time opportunity to file all such belated documents in accordance with the provisions of the scheme.

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