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23Jul
Companies (Incorporation) Fifth Amendment Rules, 2021

Ministry of Corporate Affairs (MCA) has issued Companies (Incorporation) Fifth Amendment Rules, 2021 which will be effective from 1st Sept, 2021. Vide this amendment, in the Companies (Incorporation) Rules, 2014, a new rule 33A has been inserted, which provides for allotment of a new name to the existing company under section 16(3) of the Companies Act, 2013.

This situation arises in case of rectification of name of company u/s 16 of the act, if through inadvertance a company is registered with a name which is identical with existing company.

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30Jun
MCA grants extension of time for filing certain forms – General Circular dt 30th June, 2021

Continuing with the practice of issuing notification on last date, Ministry of Corporate Affairs (MCA) has given relaxation on levy of additional fees in filing of certain forms under the Companies Act,203 and LLP Act 2008 meaning thereby that Extension of time has been given in filing of certain forms.

MCA has issued a General Circular No.11/2021 dated 30th June, 2021 on receipt of various requests for extension of timelines specified in earlier issued General Circular No.06/2021 dt. 03.05.2021.

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25Jun
MCA Clarification on passing of ordinary and special resolutions: General Circular No.10/2021

Ministry of Corporate Affairs (MCA) vide circular dated 23rd June, 2021 has allowed companies to conduct their EGMs through VC or OAVM or transact items through postal ballot in accordance with the framework provided in the prescribed Circulars upto 31st December, 2021.

The above stated MCA circular can be accessed at https://mca.gov.in/bin/dms/getdocument?mds=fYGpVQRhK8ssM3lRSs7fsg%253D%253D&type=open

25Jun
MCA notifies Accounting Standards for Small and Medium Sized Companies

The Ministry of Corporate Affairs (MCA) notified the accounting standards for small and medium companies (SMC) that revise the turnover and borrowing limits and help in making disclosure requirements less onerous. The Government notified on 23 June , 2021, the Companies (Accounting Standards) Rules, 2021. The notification has included the revised definition of SMCs. Under the revised SMC definition, the turnover limit has been increased from Rs 50 crore to not exceeding Rs 250 crore and with borrowings not exceeding Rs 50 crore. This is in addition to the requirements that such entities should be unlisted companies, which are not banks, financial institutions or insurance companies.

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22Jun
DIN can’t be deactivated/cancelled solely for disqualification u/s 164 (2) of Companies Act, 2013: Kerala High Court

The Kerala High Court held that Director Identification Numbers (DINs) allotted under Rule 10 of the Companies (Appointments and Qualifications of Directors) Rules, 2014, are not liable to be deactivated or cancelled solely for the reason of disqualification for appointment / reappointment as Directors of Companies u/s Section 164(2) of the Companies Act, 2013.

The High Court also upheld the constitutionality of Sections 164 (2) and 167 (1) of the Companies Act, 2013, which deal with the disqualification of Directors from companies. The order further stated that Section 164(2) is not retrospective in operation.

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19Jun
Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021

Ministry of Corporate Affairs (MCA) has vide its notification dated 18th June 2021 has amended the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019.

Due to this amendment, it has been added that in case of delay on the part of an individual in applying to the Indian Institute of Corporate Affairs (IICA) under sub-rule (7) for inclusion of his name in the data bank of Independent Directors or in case of delay in filing an application for renewal thereof, the IICA shall allow such inclusion or renewal, as the case may be, under rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014 after charging a further fees of one thousand rupees on account of such delay.

MCA notification can be accessed at https://mca.gov.in/bin/dms/getdocument?mds=WKw7cnmeWvFV%252BpCpYpqgrg%253D%253D&type=open

16Jun
MCA removes the restriction of matters to be transacted only at physical meetings

MCA has issued notification dated June 15, 2021, w.r.t. amendment in Companies (Meetings of Board and its Powers) Rules, 2014.

With the said amendment, restriction on certain matters to be transacted only at physical meeting of Board/Committee of Directors are done away with. Consequently, the following resolutions can be passed in a meeting held through Video Conferencing or other audio visual means:-

(i) the approval of the annual financial statements;
(ii) the approval of the Board’s report;
(iii) the approval of the prospectus;
(iv) the Audit Committee Meetings for consideration of financial statement including consolidated financial statement, if any, to be approved by the Board under sub-section (1) of section 134 of the Act; and
(v) the approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover.

MCA notification can be accessed at following link:
https://mca.gov.in/bin/dms/getdocument?mds=zwpAcIfQhKOgB8vwf%252FztbA%253D%253D&type=open
29Mar
MCA amends Schedule III to the Companies Act, 2013

Ministry of Corporate Affairs (MCA) has made the changes in Schedule III to the Companies Act, 2013 wef 1st April 2021 to ensure more transparency. Schedule III contains the general instructions for preparation of Balance Sheet and Statement of Profit and Loss of a Company. Following are the changes made in the financials/ notes to accounts on account of amendments in Schedule III brought about by MCA:

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21May
MCA extends period for names reserved and Forms resubmission

Ministry of Corporate Affairs (MCA) has issued a statement on 20 May, 2020 1 which states that Names expiring any day between 15th March, 2020 to 31st May would be extended by 20 days beyond 31st May 2020. It has also stated that SRNs where last date of Resubmission (RSUB) falls between 15th March 2020 to 31st May, 2020, additional 15 days beyond 31st May 2020 would be allowed. For details on MCA extends period for names reserved and Forms resubmission, please click the following link.

References
  1. MCA Statement 20 May, 2020[↩]