{"id":11643,"date":"2020-06-28T13:00:41","date_gmt":"2020-06-28T07:30:41","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=11643"},"modified":"2022-09-10T14:45:41","modified_gmt":"2022-09-10T09:15:41","slug":"covid-19-measures-taken-by-mca-for-businesses-in-india-2020","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/covid-19-measures-taken-by-mca-for-businesses-in-india-2020\/","title":{"rendered":"COVID-19: Overall Measures taken by MCA for businesses in India, 2020"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Recently,\nMCA has deployed an e-form on its website, which has to be filled voluntarily\nby the company\u2019s signatory for ensuring their commitment towards Compliance\nwith the recent guidelines implemented in the context of COVID-19. The filling\nup this form is not mandatory but crucial for those who want to work in tandem\nwith COVID-19 measures rendered by the Central\/ State Government to combat this\npandemic. <\/p>\n\n\n\n<p><strong><em>Relaxation offered by MCA w.r.t COVID 19 crisis<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"703\" height=\"503\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-175.png\" alt=\"Relaxation offered by MCA w.r.t COVID 19 crisis\" class=\"wp-image-11644\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-175.png 703w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-175-300x215.png 300w\" sizes=\"(max-width: 703px) 100vw, 703px\" \/><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-measures-taken-by-mca-for-businesses-in-india-2020\/#Form_CAR_Companies_Affirmation_of_Readiness_towards_COVID-19\" >Form CAR (Companies\nAffirmation of Readiness towards COVID-19)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-measures-taken-by-mca-for-businesses-in-india-2020\/#Companies_Amendment_Rules_2020\" >Companies\nAmendment Rules, 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-measures-taken-by-mca-for-businesses-in-india-2020\/#Interim_period\" >Interim period<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-measures-taken-by-mca-for-businesses-in-india-2020\/#Board_Meetings\" >Board Meetings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-measures-taken-by-mca-for-businesses-in-india-2020\/#CARO_2020\" >CARO 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-measures-taken-by-mca-for-businesses-in-india-2020\/#Independent_Directors_Meeting\" >Independent Director\u2019s Meeting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-measures-taken-by-mca-for-businesses-in-india-2020\/#Extension_for_Declaration_of_Commencement_of_Business\" >Extension for Declaration of Commencement of Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-measures-taken-by-mca-for-businesses-in-india-2020\/#The_requirement_of_Section_149_3\" >The requirement of Section 149 (3)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-measures-taken-by-mca-for-businesses-in-india-2020\/#CSR_funds\" >CSR funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-measures-taken-by-mca-for-businesses-in-india-2020\/#Requirement_under_section_732c_of_CA-13\" >Requirement under section 73(2)(c) of CA-13<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/covid-19-measures-taken-by-mca-for-businesses-in-india-2020\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Form_CAR_Companies_Affirmation_of_Readiness_towards_COVID-19\"><\/span><strong>Form CAR (Companies\nAffirmation of Readiness towards COVID-19)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The filing of this e-form does not require any charges or Digital signature. This is just to ensure that organizations are taking measures needed in their combat against COVID-19. Again, no fees will impose on the filling of this form. Companies who are willing to take part in this Government-initiated program can fill this e-form voluntarily.  The government took this initiative to create awareness among the corporates in the context of COVID-19 measures. The structure of this form is not complicated at all, as it\u2019s relatively simple and demands some necessary details which have to be filled by the company\u2019s authorized signatory. The Ministry of Corporate Affairs released this form on 23rd March 2020.  <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Companies_Amendment_Rules_2020\"><\/span><strong>Companies\nAmendment Rules, 2020<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>From\nthe time being since this establishment of these rules, i.e., 19th march 2020\ntill 30th June 2020, the board meeting that requires the presence of the\nconcerned directors may be held via audiovisual or video conferencing means as\nper rule 3. It is one of the most important COVID-19 measures taken by MCA to\nstabilize the normal working activities of the corporate.<\/p>\n\n\n\n<p>The following list of matters that demands the physical presence of members was mandatory under CA, 2013:-<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"607\" height=\"245\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-176.png\" alt=\"physical presence of members was mandatory under CA, 2013\" class=\"wp-image-11646\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-176.png 607w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-176-300x121.png 300w\" sizes=\"(max-width: 607px) 100vw, 607px\" \/><\/figure><\/div>\n\n\n\n<p>As the new financial year is around the corner, companies can conduct their important Board Meetings via Video Conferencing. The physical presence of the Director\u2019s panel is not mandatory until 30th June 2020.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Interim_period\"><\/span>Interim period<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Ministry has already rendered a Moratorium period to the <a href=\"https:\/\/corpbiz.io\/llp-registration\"><strong>LLPs<\/strong><\/a> from 01st April to 30th September 2020. The late filing of any return or document is not subjected to any additional charge or fine that is required to be filled at MCA 21. <\/p>\n\n\n\n<p>This initiative is an important part of COVID-19 measures that ensure the seamless functioning of the corporates. Also, it creates an opportunity for the LLPS\/corporates to deal with long-pending Compliance and wants to complete them by avoiding additional charges. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Board_Meetings\"><\/span>Board Meetings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nMCA also set up a provision for the board meeting\u2019s schedule. According to the\nlatest amendment, a period of 60 days has been added up between the two\nconsecutive Board Meetings, amending the figure to 180 days instead of 120 days.\nThis relaxation of additional timespan is applicable till 30th September 2020,\nand it will prove extremely helpful for the companies looking to put the better\nfight against the crisis. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CARO_2020\"><\/span>CARO 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The applicability of Companies (Auditor\u2019s Report) Order, 2020, has been extended to the financial year 2020-2021. This amendment is against the previous notification, which was released earlier, indicating the financial year 2019-2020. This will help the companies and their auditors to unload the burden for the financial year 2019-20. It is arguably one of the most crucial COVID-19 Measures taken by MCA. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/mca-issues-clarification-on-spending-of-csr-funds-for-covid-19\/\">MCA issues clarification on the spending of CSR funds for COVID-19<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Independent_Directors_Meeting\"><\/span>Independent Director\u2019s Meeting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> As per the provision of <strong>Company Act 2013<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/ebooks.html\"><strong>[1]<\/strong><\/a><\/sup><strong> <\/strong>, the containment of at least one meeting should be done by the company\u2019s independent directors without including Non-Independent Directors. The Ministry has dispensed this regulation for the year 2019-2020. However, if the IDs fail to comply with this provision, it shall not be deemed as a violation.\u00a0  <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Extension_for_Declaration_of_Commencement_of_Business\"><\/span>Extension for Declaration of Commencement of Business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This\namendment cum relief has offered by the government to the companies who are\nfacing adversity regarding the filling of INC-20A form. The recent change will\nallow newly established companies to avail of the additional relaxation of\n180days. <\/p>\n\n\n\n<p>All\nthe companies established after 02nd November 2018 were supposed to complete\nthe filling of the INC-20A form within 180 days of receipt of Certificate of\nIncorporation. Those companies which have possession of current account and\nshareholder money in that very account are the only eligible candidates in this\nregard.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_requirement_of_Section_149_3\"><\/span>The requirement of Section 149 (3)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Section\n149 (3) requires every company to secure one Director who will ensure its\npresence for 182 days in India during the financial year. Any violation by the\ncompany in this regard shall not be deemed as a non-compliance. The current\npandemic has left an adverse impact on the transportation system of the\ncountry. This initiative is a welcome change for those companies whose\noperations are under the management of foreign directors. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CSR_funds\"><\/span>CSR funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Ministry\nhas clarified that the expenditure made by companies\u2019 w.r.t CSR funds for\nCOVID-19 shall be deemed as CSR activity. The spending of this fund can be\nallocated to serve different purposes under item no. (i) And (xii) of Schedule\nVII that promotes spending on health care, including disaster management and\nsanitation. <\/p>\n\n\n\n<p>This\nway, companies can provide a better platform to help seekers dealing with this\npandemic. Corporate giants like Reliance, TATA, and Mahindra are already\nworking in this direction quite proactively.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Requirement_under_section_732c_of_CA-13\"><\/span>Requirement under section 73(2)(c) of CA-13<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>To ensure the deposit repayment\nreserve of 20%, growing in the financial year 2020-2021 prior 30th April 2020\nwill be authorized to have complied till 30\/6\/2020<\/li><\/ul>\n\n\n\n<ul><li>As per Companies Act 2014, rule\n18, to invest 15% of debentures growing in the financial years 2020-21 or\ndeposit prior 30\/4\/2020, may be complied till 30\/6\/2020. <\/li><\/ul>\n\n\n\n<p>Both\nthese amendments are the imperative part of the COVID-19 Measures taken by MCA\nin recent times. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>COVID 19 pandemic has put everything on hold, including corporate activities. LPPs across the nation can expect more changes in the upcoming months from the government if the situation gets worse. These reforms can act as a savior for a lot of companies who are looking to render better performance in this crisis and stay safe at the same time. If you have some second thoughts or queries regarding this topic, please share your views with us. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/caro-2020-new-norms-issued-for-auditors\/\">CARO 2020: New Norms Issued for Auditors\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, MCA has deployed an e-form on its website, which has to be filled voluntarily by the company\u2019s signatory for ensuring their commitment towards Compliance with the recent guidelines implemented in the context of COVID-19. The filling up this form is not mandatory but crucial for those who want to work in tandem with COVID-19 [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":11648,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153],"tags":[708],"acf":{"service_id":"215"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":3287,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/11643"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=11643"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/11643\/revisions"}],"predecessor-version":[{"id":48601,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/11643\/revisions\/48601"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/11648"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=11643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=11643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=11643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}