Various due dates extended till 31^st December 2020 under company law

On account of large-scale disturbance caused by the Pandemic and after due examination, the Ministry of Corporate Affairs announced the extension of various due dates under company law. The entire announcement is taken up and explained in the current article.

List of various extensions provided under company law

In all, the Ministry of Corporate Affairs extended due dates relating to the following compliances-

1. LLP Settlement Scheme, 2020.
2. Companies Fresh Start Scheme, 2020.
3. Holding of Extraordinary General Meetings and Board Meetings via Video Conferencing or Other Audio-Visual Mechanism.
4. Filing of forms relating to creation or modification of charges.
5. Registration of Independent Directors of the company on the database maintained by IICA.

All the above extensions are briefly explained hereunder.

Extension relating to the LLP Settlement Scheme 2020

LLP Settlement Scheme 2020 is one-time relaxation announced by the Government applicable to the defaulting LLPs. The Scheme came into force from 1^st April 2020. The Scheme provided relaxation in terms of reduction in additional fees.

Vide General Circular No. 31/2020 dated 28^th September 2020, the Ministry of Corporate Affairs has extended the duration of the Scheme till 31^st December 2020. Consequently, by extending the due date, the defaulting LLPs are given additional time to make good their previous defaults.

Extension relating to the Companies Fresh Start Scheme, 2020

The Companies Fresh Start Scheme 2020 is one-time relaxation announced by the Government applicable to the defaulting companies. The Scheme came into force from 1^st April 2020. As per the Scheme, the defaulting companies shall pay only the applicable normal fees for all the filings with the MCA 21 registry. No additional fees will be charged whatsoever from the defaulting companies.

Vide General Circular No. 30/2020 dated 28^th September 2020, the Ministry of Corporate Affairs has extended the duration of the Companies Fresh Start Scheme 2020 till 31^st December 2020. Accordingly, the defaulting companies can now file all the pending/ belated filings till 31^st December 2020 without payment of any additional fees.

Extension for holding the extraordinary general meeting and board meeting via video conferencing or other audio-visual means

The Ministry of Corporate Affairs has facilitated conduct of the extraordinary general meeting and board meeting through the means of video conferencing or other audio-visual means, vide General Circular No. 14/2020 dated 8^th April 2020 and General Circular No. 17/2020 dated 13^th April 2020.

Earlier the above facility was available till 30^th September 2020. However, the Government, vide General Circular No. 33/2020 dated 28^th September 2020, extended the facility till 31^st December 2020.

Notably, rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 restricts certain items (like approval of annual financial statement, board’s report, prospectus etc.) to be dealt at the Board Meetings. However, the said restriction is now lifted. Accordingly, all the items can be dealt at the Board Meetings via video conferencing or any other audio-visual means.

Extension relating to the Scheme for relaxation of time for filing of forms relating to creation or modification of charges

Scheme for relaxation of time in the filing of forms relating to creation/ modification of charges was introduced vide General Circular No. 23/2020 dated 17^th June 2020. The Scheme is applicable in respect of the filing of Form No. CHG-1 and Form No. CHG-9.

Vide General Circular No. 32/2020 dated 28^th September 2020, the Ministry of Corporate Affairs has extended the time limit of applicability of Scheme till 31^st December 2020. Accordingly, the period beginning from 1^st March 2020 to 31^st December 2020 will not be counted for the purpose of calculating the number of days under section 77 and section 78 relevant for filing Form No. CHG-1 and Form No. CHG-9.

Extension of time for registration of independent directors of the company on the databank maintained by IICA

As per provisions of rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, the independent directors of the company are required to register his name in the databank of the Indian Institute of Corporate Affairs (IICA). The due date for the same is extended till 31^st December 2020.