MCA has amended the Companies (Management and Administration) Rules, 2014, while exercising its powers conferred under section 92 sub-section (3), read with section 469 sub-sections (1) and (2) of the Companies Act, 2013. The Central Government hereby makes the rules which are called as Companies (Management and Administration) Amendment Rules, 2020. They will come in force on the date of publication in the Official Gazette. The amendment came into force from 28 August 2020.
Highlights of Amendment
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New Amendment: Companies does not require to attach the Extract of Annual return
The Ministry of Corporate Affairs notified Companies Management, and Administration Amendment Rules 2020; it stated that the company is no longer required to attach extract of the Annual Return. The rules seek to amend the Companies Management and Administration Rules 2014. In Companies (Management and Administration) Rules, 2014, in rule 12, in sub-rule (1), the proviso will be inserted, as follows:-
- Provided that the company is now not be required to attach the extract of an annual return with a Board’s report in Form No. MGT.9. In such a case, the web link of annual return has been disclosed in the Board’s report, and it must be in accordance with section 92, sub-section (3) of the Companies Act, 2013.
No need to Attach the MGT-9 with Directors Report
According to section 134 of the Companies Act, the statements have to be attached, laid before the company in a general meeting, which is a report by its Board of Directors. It must include “the extract of an annual return” as given under sub-section (3) of section 92.
According to section 92 sub-section (3) of the Companies Act, 2013, every company has to place a copy of the annual return on a website of a company, if any. The web-link of such annual return will be disclosed in the Board’s report.
Whereas now MCA vide notification dated 28 August 2020 has notified that the Extract of an Annual Return in Form MGT 9 is not needed to be enclosed with the Board Report. The company is only required to disclose a web link in the Board Report where an annual return mentioned in sub-section (3) of section 92 is placed for the Financial Year – ended 31 March 2020 & onwards.
MCA Notified To Display Companies Annual Return on website
MCA has notified the provision for the display of company’s annual return on the website while exercising its powers conferred by sub-section 2 of section 1 of the Companies (Amendment Act 2017 (1 of 2018).
The central government[1] hereby appoints the date- 28 August 2020 on which the provision of section 23, clause (ii) of the said Act, will come into force. It states that every company must place a copy of the Annual Return on the website of the company if any, and the web link of such annual return are to be disclosed in the Board’s Report.
Conclusion
In understanding of the above stated latest notification, companies are no longer burdened with to attach extract of an Annual Return along with the Board’s report in Form No. MGT.9. All are required to file a copy of the Annual Return on the website of a company, and a web link of such annual return must be disclosed in the Board’s Report.
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