In the wake of the second wave of COVID-19 and with lockdowns announced in several states, the Ministry of Corporate Affairs (MCA) has issued three circulars on 3 May 2021 to provide relaxation from few compliances under the Companies Act, 2013 (The Companies Act) and the Limited Liability Partnership Act, 2008 (The LLP Act).
General Circular No. 06. 2021: Relaxation on levy of additional fees in filing of certain forms under the Companies Act and the LLP Act
If due date of any e-form required to be filed under the Companies Act and the LLP Act [except CHG-1 (creation/modification of charges), CHG-4 (satisfaction of charges) and CHG-9 (form related to charges on debentures) falls between 1 April 2021 to 31 May 2021, then such forms can be filed without any additional fees till 31 July 2021.
General Circular No. 07. 2021: Relaxation of time for filing forms related to creation or modification of charges under the Companies Act
Applicability
The circular shall be applicable if the date of creation / modification of charge falls:
a. before 1 April 2021 (but the timeline for filing of such form had not expired under section 77 of the Companies Act, i.e., 120 days, as on 1 April 2021)
b. on any date between 1 April 2021 to 31 May 2021 (both dates inclusive).
Relaxation in timeline
- In case the date is covered under point (a) above - the period beginning from 1 April 2021 and ending on 31 May 2021 shall not be reckoned for the purpose of filing of form under section 77 and section 78 of the Companies Act.
- In case the date is covered under point (b) above (provided the form is not filed till 31 May 2021), the first day for counting the timelines under section 77 or section 78 of the Companies Act shall be considered as 1 June 2021.
Applicable fees
- In case the due date is covered under point (a) above -
- If a company files the form between 1 April 2021 to 31 May 2021 then fees applicable on such form as on 31 March 2021 shall be payable
- If the company files the form after 31 May 2021 – then the number of days to calculate the fees shall be date of creation/modification to the date of filing of form (less) days between 1 April 2021 to 31 May 2021
- In case the date is covered under point (b) above -
- If a company files the form between 1 April 2021 to 31 May 2021 – normal fees shall be applicable
- If a company does not file the form between 1 April 2021 to 31 May 2021 - then the number of days to calculate the fees shall begin from 1 June 2021 till the date of filing of the form
General Circular No. 08. 2021: Gap between two board meetings under section 173 of the Companies Act
MCA has extended the gap between two Board meetings by 60 days for the first two quarters of the financial year 2021-22.
Accordingly, the gap between two consecutive Board meetings may be 180 days during the quarters – April 2021 to June 2021 and July 2021 to September 2021, instead of 120 days
BDO Comments
- With the country reeling under the severe second wave of COVID-19, these extensions will relieve some of the compliance burdens on Corporates and LLP’s.
- There is no reason why the MCA should not come out with relaxation of timelines for filing CHG-4 to grant relief to corporates for satisfaction of charges
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