Amendments by MCA: September 2020
In this edition we have tried to bring to your notice the latest amendment that followed in the month of September issued by MCA.
Amendment introduced by MCA
Companies (Acceptance of Deposits) Rules, 2020
In exercise of the powers conferred by section 73 read with sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government in consultation with the Reserve Bank of India, hereby makes the following rules further to amend the Companies (Acceptance of Deposits) Rules, 2014, as Follows:- http://www.mca.gov.in/Ministry/pdf/Rule_25092020.pdf
[Source: MCA Notification, Dated 07th September, 2020]
Relaxation of additional fees and extension of last date of filing of CRA-4 (form for filing of cost audit report) for FY 2019-20 under the Companies Act, 2013
Representations have been received from various stakeholders for extension of last date of filing of CRA-4 (form for filing of cost audit report) due to impact of COVID-19 pandemic , In view of the extraordinary disruption caused due to the pandemic, It has been decided that if cost audit report for the financial year 2019-20 by the cost auditor to the board of director of the companies is submitted by 30th November, 2020 and provide further clarification as follows:- http://www.mca.gov.in/Ministry/pdf/circular_10092020.pdf
[Source: MCA Circular No.29/2020, Dated 10th September, 2020]
Notification under section 10A of Insolvency and Bankruptcy Code, 2016
In exercise of the powers conferred by section 10A of the Insolvency and Bankruptcy Code, 2016 (31 of 2016) [as inserted by section 2 of the Insolvency and Bankruptcy Code (Second Amendment) Act, 2020 (17 of 2020)], the Central Government hereby notifies further period of three months from the 25th September, 2020 for the purposes of the said section.
[Source: MCA Notification, Dated 24th September, 2020]
Insolvency and Bankruptcy (Application to Adjudicating Authority) (Amendment) Rules, 2020
In exercise of the powers conferred by clauses (c), (d), (e) and (f) of sub-section (2) of section 239 read with sections 7, 8, 9 and 10 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Central Government hereby makes the following rules further to amend the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules 2016,namely: http://www.mca.gov.in/Ministry/pdf/InsolvencyandBankruptcyRules_25092020.pdf
[Source: MCA Notification, Dated 24th September, 2020]
Extension of Companies Fresh Start Scheme, 2020
In continuation to this Ministry’s General Circular No.12/2020 dated 30.03.2020, In View of the large scale Disruption caused by the COVID-19 pandemic and after due examination, It has been decided to extend aforesaid scheme till 31st December,2020. All other requirements provided in the said circular shall remain unchanged.
[Source: MCA Circular No.30/2020, Dated 28th September, 2020]
Extension of LLP Settlement Scheme, 2020
In continuation to this Ministry’s General Circular No.13/2020 dated 30.03.2020, In View of the large scale Disruption caused by the COVID-19 pandemic and after due examination, It has been decided to extend aforesaid scheme till 31st December,2020. All other requirements provided in the said circular shall remain unchanged.
[Source: MCA Circular No.31/2020, Dated 28th September, 2020]
Extension of time – Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013
In continuation to this Ministry’s General Circular No.23/2020 dated 17.06.2020 [G.C] and after due examination and it has been decided to 01.10.2020 wherever they appear In the G.C. shall be substituted with figures 31.12.2020 and 01.01.2021 respectively.
[Source: MCA Circular No.32/2020, Dated 28th September, 2020]
Extension of time for EGM through Video Conference (V)C or Other Audio Visual Means (OAVM) or passing of certain items only through postal ballot without convening general meeting
In continuation to this Ministry’s General Circulars No.14/2020 dated 8th April, 2020, No.17 /2020 dated 13th April, 2020 and No.22/2020 dated 15.06.2020 and after due examination and it has been decided to allow companies to conduct their EGMs through VC or OAVM or transact items through postal ballot in accordance with the framework provided in the aforesaid Circulars upto 31st December, 2020. All other requirements provided in the said Circulars shall remain unchanged.
[Source: MCA Circular No.33/2020, Dated 28th September, 2020]
Companies (Amendment) Act, 2020
The Companies (Amendment) Act, 2020 (herein after referred to as ‘the Amendment Act’) got the assent of Hon’ble President as on 28th September, 2020 and is thus operative since that date. It was passed by the Lok Sabha on 19th September, 2020 and by the Rajya Sabha on 22nd September, 2020. The Amendment act as follows:- http://www.mca.gov.in/Ministry/pdf/AmendmentAct_29092020.pdf
[Source: MCA Notification, Dated 28th September, 2020]
Clarification with regard to creation of deposit repayment reserve of 20% u/s. 73 (2) (C) of the Companies Act 2013 and to invest or deposit 15% of amount of debentures u/r.18 of Companies (Share capital and Debentures) Rules 2014 – COVID-19 – Extension of time-regarding.
In Continuation to general Circulars No. 11/2020 dated 24th March 2020 and 24/2020 dated 19.06.2020 keeping in view the requests received from various stakeholders seeking extension of time for compliance of the subject requirements on account of Covid-19, it has been decided to further extend the time in respect of matters referred to in paras V. Vl of the aforesaid circular dated 24.03.2020, from 30th September 2020 to 31st December, 2020. All other requirement shall remain unchanged.
[Source: MCA Circular No.34/2020, Dated 29th September, 2020]