On account of difficulties faced by the stakeholders due to the resurgence of COVID-19, MCA has provided some relaxations in the compliances required to be undertaken under the provisions of Companies Act, 2013 and LLP Act, 2008 vide its General Circular No. 08/2021 and 06/2021.
Circular 08/2021: MCA has extended the gap between two successive board meetings with additional 60 Days
As per Section 173 of the Companies Act, 2013, every company shall hold the first meeting of the Board of Directors within thirty days of the date of its incorporation and thereafter hold a minimum number of four meetings of its Board of Directors every year in such a manner that not more than one hundred and twenty days shall intervene between two consecutive meetings of the Board.
Provided that the Central Government may, by notification, direct that the provisions of this sub-section shall not apply in relation to any class or description of companies or shall apply subject to such exceptions, modifications or conditions as may be specified in the notification.
The Ministry of Corporate Affairs vide its circular dated 03rd May 2021, has relaxed the requirement of Section 173(1) and extended the gap between two board meetings by a period of 60 days.
Accordingly, the gap between two consecutive meetings of the Board of Directors may extend to 180 days during the ‘Quarter- April to June 2021’ and ‘Quarter- July to September 2021’ instead of 120 days as required in the Companies Act, 2013.
For instance, if a company’s board meeting has been held on 01st April 2021 and second board meeting on 27th September 2021, then the same would not be viewed as violation of the provisions of the Act, as the same has been conducted within 180 days.
Circular 06/2021 Relaxation on levy of additional fee on filing of certain forms under the Companies Act, 2013 and LLP Act, 2008
Companies/LLPs are required to file various forms under the Companies Act, 2013 and the LLP Act, 2008. But due to the resurgence of Covid-19 pandemic, they are facing various issues to file the same. The Ministry of Corporate Affairs has issued a circular on 03rd May 2021 allowing stakeholders to file various forms due for filing during 01st April 2021 to 31st May 2021 under the Companies Act 2013/LLP Act, 2008 by 31st July 2021 without payment of additional fees.
The above said relaxation scheme do not cover e-form CHG-1, e-form CHG-4 and e-form CHG-9.
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