ArticleCompany Law

Latest MCA Relaxation : Waiver of additional fees, Extra time for filing of forms, Holding of BM or GM through VC

Short Summary:

Ministry of Corporate Affairs Due to the Covid pandemic has given some relaxation to Companies. We are producing here all the relaxation at one place which is into effect as on date i.e. 25th June 2021 Like waiver of additional fees, extra time for filing of forms, holding of BM or GM through VC, etc.

Holding of EOGM through VC:

The MCA vide below-mentioned circulars first time allowed Companies to hold their Extra-Ordinary General Meeting through Video Conferencing.

S. No. Circular No. Date of Circular Extension
1. 14/2020 08th April 2020 30th June 2020
2. 22/2020 15th June 2020 30th September 2020
3 30th June 2021
4 10/2021 23rd June 2021 31st December 2021

As per the latest amendment of 23rd June 2021 Ministry has allowed companies to hold their Extra-Ordinary General Meeting through Video Conferencing till 31st December 2021. A welcome Step from the Ministry of Corporate Affairs.

Holding of AGM through VC:

The MCA vide below-mentioned circulars first time allowed Companies to hold their Annual General Meeting through Video Conferencing.

S. No. Circular No. Date of Circular Extension
1 20/2020 05th May 2020 31st December 2020
2 02/2021 13th January 2021 31st December 2021

As per the Circular passed in January 2021 ministry has already allowed all the Companies to hold their Annual General Meeting through Video Conferencing till 31st December 2021

Holding of BM through VC:

Before the amendment, if Company wants to conduct the business mentioned under Rule 4 then the physical presence of quorum was mandatory. If a physical quorum of directors was present, then other directors were allowed to attend the meeting through video conferencing.

  1. Approval of financial statements;
  2. Approval of matter relating to merger/amalgamation;
  3. Approval of matter relating to takeover/acquisition;
  4. Approval of prospectus for issue of shares.

Also Like : Auditor Certificate format for DPT-3

The MCA vide below-mentioned Amendment in Rules, the first time allowed Companies to hold their Board Meeting through Video Conferencing for discussion on restricted matters.

S. No. Circular No. Date of Circular Extension
1 Companies (Meetings of Board and its Powers) Amendment Rules, 2020 19th March 2020 30th June 2020
2 Companies (Meetings of Board and its Powers) Second Amendment Rules, 2020 23rd June 2020 30th September 2020
3 Companies (Meetings of Board and its Powers) Second Amendment Rules, 2021 15th June 2021 Life Time

After the amendment of 15th June 2021, Companies can deal with any type of matter in the Board Meeting through Video Conferencing. Now, there is no restriction on the discussion on any matter in a Board meeting through video conferencing.

Relaxation from Additional Fees:

As per the MCA circular dated 03rd May 2021, if the due date of any form of Company and LLP out of 53 form list given by MCA (except CHG-1, CHG-4, and CHG-9) falling between 1st April 2021 to 31st May 2021 then those forms can be file without additional fees till 31st July 2021.

Also Like : Extension in Due Date of filing of DPT-3 and CFSS

Relaxation in time for filing of Charge related form after due date:

As per MCA circular dated 03rd May 2021, given the following relaxation to charge related form:

  1. If 120 from the date of creation of charge or modification of charge is not expired on 1st April 2021 then the period from 01st April 2021 to 31st May 2021 shall not consider for purpose of calculation of 120 days.
  2. If any charge created or modified between 01st April 2021 to 31st May 2021 then 01st June 2021 shall be considered as 1st day of creation/ modification of charge.

Important Points:

  1. There is no change in disclosures of Directors Report for f.y. ended 31st March 2021.
  2. There is no change in Reporting in Financial Statement for f.y. ended 31st March 2021.
  3. There is no change in disclosures of Auditor’s Report for f.y. ended 31st March 2021.

Disclaimer: The entire contents of this document have been prepared based on relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, I assume no responsibility, therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not professional advice and is subject to change without notice. I assume no responsibility for the consequences of the use of such information.

IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF, OR IN CONNECTION WITH THE USE OF THE INFORMATION

CS Divesh Goyal

CS Divesh Goyal is a Fellow member of ICSI, Practicing Company Secretary, and Steering Voice in the Corporate World. He is a Prop. at Goyal Divesh & Associates, Company Secretaries. He is a competent professional having enrich 6 years post qualification experience as Company Secretary with expertise in Corporate Law, FEMA, IBC, SEBI, RBI. He has written more than 600 editorials on Companies Act, 2013 to keep at pace with the latest changes and critically analyse the implications of various provisions of the Companies Act, 2013, Insolvency & Bankruptcy Code, 2016, FEMA, RBI, SEBI etc. He is a vibrant, sought after, and spellbinding speaker and has delivered more than 200 sessions on various aspects of Company Law at ICSI, ICAI, and online platforms. Apart from his passion for his work he also believes in elevating his profession and for that dream

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