COMPANIES (APPOINTMENT AND QUALIFICATION OF DIRECTORS) 2ND AMENDMENT RULES, 2020- MCA NEWS

COMPANIES (APPOINTMENT AND QUALIFICATION OF DIRECTORS) 2ND AMENDMENT RULES, 2020- MCA NEWS

This Amendment shall come in force on the date of their publication in the Official Gazette i.e 29th April 2020.

MCA LATEST UPDATES- COMPANIES (APPOINTMENT AND QUALIFICATION OF DIRECTORS) 2ND AMENDMENT RULES, 2020
 

This Amendment shall come in force on the date of their publication in the Official Gazette i.e 29th April 2020;

Earlier it was stated that every individual who has been appointed as independent director in a company on the date of commencement of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, shall within a period of five months from such commencement apply online to the institute for inclusion of his name in the data bank for a period of one year or five years or for his life-time, and from time to time take steps as specified in sub-rule (2), till he continues to hold the office of an independent director in any company;

As per the recent amendment the word “five months” has been replaced by word “seven months”. Therefore seeing the recent circumstances amidst covid-19 government has deferred the time for registration of details of independent directors by two months.
 

PERIOD/ DAYS OF EXTENSION FOR NAMES RESERVED AND RESUBMISSION OF FORMS

In view of the situation going on in the country, government is providing various relaxation to companies , enterpreneurs and professionals with respect to filing of various compliances . The following relaxations have been provided with respect to  companies & LLPs:
 

In case of Companies
  • Company Incorporation :  As per the new Spice+ facility available on MCA portal for incorporation of companies name is reserved only for a period of 20 days and PART B of this form has to be filed within 20 days of name reservation , now as per the notification relaxation has been given that any names expiring between 15th March 2020 to 3rd May 2020 would be extended by 20 days beyond 3rd May 2020 ie. Name will not be lapsed and it will be available for filing till 23rd May, 2020.
     
  • Name Change :  In case the company has reserved a name for name change of the company . In this name is reserved for a period of 60 days . Therefore INC-24 for name change has to be filed within period of 60 days of name reservation .  Therefore names expiring between 15th March 2020 to 3rd May 2020 would be extended by 20 days beyond 3rd May 2020 ie. Name will not be lapsed and it will be available for filing till 23rd May, 2020.
     
  • Forms Resubmission : In case where any form has been marked for resubmission by the department in that case the SRNs the last date of which is falling between 15th March 2020 to 3rd May 2020 shall be allowed relaxation of period of 15 days beyond 3rd May i.e they can resubmit the forms till 18th May 2020 in this case.
     
  • Forms will not be marked as “Not to be taken on record” due to non-resubmission during this extended period as mentioned above.
     
In case of LLPs
  • LLP Incorporation/ Name change  :  In case the LLP has reserved a name for name change or incorporation  of the LLP . In this name is reserved for a period of 90 days . Therefore Form FILLIP/ Form 5  for name change / incorporation has to be filed within period of 90 days of name reservation .  Therefore names expiring between 15th March 2020 to 3rd May 2020 would be extended by 20 days beyond 3rd May 2020 ie. Name will not be lapsed and it will be available for filing till 23rd May, 2020.
     
  • Forms resubmission : In case where any form has been marked for resubmission by the department in that case the SRNs the last date of which is falling between 15th March 2020 to 3rd May 2020 shall be allowed relaxation of period of 15 days beyond 3rd May i.e they can resubmit the forms till 18th May 2020 in this case.
     
  • Forms will not be marked as “Not to be taken on record” due to non-resubmission during this extended period as mentioned above
     
HOLDING OF AGM OF COMPANIES WHOSE FINANCIAL YEAR ENDED ON 31ST DECEMBER 2019
 

With  the widespread of  Corona Virus (COVID-19) in India, its declaration as pandemic by the World Health Organization.  Therefore on receipt of various representations from the stakeholders in relation to holding of an Annual General Meeting of Companies whose financial year has ended on 31st December, 2019, the Ministry of Corporate Affairs vide its General Circular No. 18/2020 dated 21st April, 2020, clarifies that- 

  • Every company whose Financial year ended on 31st December 2019 as per the law has to convene its Annual General Meeting within six months from the closure of the financial year (i.e. 30th June, 2020).
     
  • Regarding this compliance relaxation has been provided to these companies and therefore they can hold their Annual General Meeting on or before 30th September 2020 and that shall not be viewed as any violation in the eyes of law.

EDITED BY KANIKA GUPTA