RELAXATIONS FROM MINISTRY OF CORPORATE AFFAIRS PURSUANT TO RESURGENCE OF COVID-19 PANDEMIC – Eshwars
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RELAXATIONS FROM MINISTRY OF CORPORATE AFFAIRS PURSUANT TO RESURGENCE OF COVID-19 PANDEMIC

Authored by Adit N Bhuva & Praveen Pandian

1. Board Meeting- Minimum gap between two Board meetings:

Ministry of Corporate Affairs (MCA) had vide its General Circulars dated 03rd May 2021 extended the gap for conducting Board Meetings as specified under section 173 of Companies Act, 2013 by a period of sixty days (60 days) from the initial period of one hundred and twenty days (120 days) for the first two quarters of the financial year 2021-22.  Accordingly, the gap between two consecutive meetings of the Board shall be extended to one hundred and eighty days (180 days) during the quarters April to June 2021 and July to September 2021, instead of 120 days.

2. Relaxation on levy of additional fees in filing of various Forms:

Ministry of Corporate Affairs (MCA) had vide its General Circulars dated 03rd May 2021 provided relaxation of time up to 31st July 2021, for filing various forms (other than CHG-1, CHG-4 & CHG-9 Forms) under Companies Act 2013 and Limited Liability Partnership Act, 2008, for which the due dates fall between the period 1st April 2021 to 31st May 2021.

3. Relaxation for creation/modification of charges

Ministry of Corporate Affairs (MCA) had Vide notification dated 3rd May 2021 had relaxed the timelines for filing of forms related to creation/modification of charges.

As per provisions of Companies Act 2013, it is the duty of every company to create a charge with the registrar of companies within a period of 30 days from the date of creation of such charge on the assets of the company.

If the company is not able to file the charge with the Registrar of Companies (RoC) within the aforementioned period of 30 days, the company may file the same with RoC within a further period of 30 days with payment of additional filing fee and further period of 60 days is provided to file the charge with RoC with the payment of advalorem fees.

MCA vide notification dated 3rd May 2021 has relaxed the aforementioned timelines.

The relaxation is provided in two categories:

 

Category Date of creation / modification Due date to file the charge Calculation of due date
1 Is before 1st April 2021

 

and

 

timelines as aforementioned has not expired

Falls between 1st April 2021 to 31st May 2021 Number of days shall be counted excluding the period 1st April 2021 to 31st May 2021
2 Between 1st April 2021 to 31st May 2021 NA The first day for calculating the timeline starts from 1st June 2021.

The relaxation is not applicable to filing of Form CHG-4 for satisfaction of charge.

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