Extension of Timelines for Companies Act Compliances

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Sep 30, 2020

Extension of Timelines for Companies Act Compliances

The MCA has, through Circulars dated September 28 and 29, 2020, extended the following relaxations introduced with respect to compliance with requirements under Companies Act and the rules thereunder, in light of the ongoing COVID-19 pandemic:

i. The validity of the LLP Settlement Scheme, 2020 and Companies Fresh Start Scheme, 2020 which granted a one time opportunity to LLPs and defaulting companies, respectively, to make delayed filings without penalty has been extended from September 30, 2020 to December 31, 2020;

ii. The clarifications and guidelines introduced by MCA in April on passing of resolutions by companies holding extra-ordinary general meetings through video conferencing and other audio visual means or passing of certain items through postal ballot without convening general meetings, are now valid until December 31, 2020, instead of September 30, 2020;

iii. Deadlines for the following actions has been further extended from September 30, 2020 to December 31, 2020: (a) for companies accepting deposits, to create a deposit repayment reserve of 20% of deposits maturing during the financial year 2020-21; and (b) to invest or deposit 15% of the amount of the debentures maturing during a particular year in specified instruments.

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