Ajay K. Ratra Blog
Ajay K. Ratra Blog
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
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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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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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
Ministry of Micro, Small and Medium Enterprises vide notification no. 2347(E) dated 16.06.2021 has extended Validity of Udyog Aadhaar Memorandum (UAM) from 31st March, 2021 to 31st December, 2021.
This will help EM Part-II and UAMs certificate holders to avail benefits of the provisions under various existing schemes and incentives including Priority Sector Lending benefits of MSME.
The said amendment has been made considering the hardships being faced by MSMEs during the prevailing Covid-19 situation and the representations received from the various MSME associations, financial institutions and government departments dealing with the interest of MSME sector.
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
The Food Safety and Standards Authority of India (FSSAI) has passed an order on 8th June, 2021 making it Mandatory for food businesses to mention their FSSAI License/Registration Number on receipts, bills, invoices etc w.e.f 1st October, 2021.
FSSAI order can be downloaded from
https://www.fssai.gov.in/upload/advisories/2021/06/60c08b4456ef1Order_License_Registration_Mandating_09_08_2021.pdf
The Ministry of Corporate Affairs [MCA] has notified new E-form AGILE-PRO-S vide Notification No. G.S.R. 392(E) dated 7th June 2021. E-form AGILE-PRO-S has been introduced for easy company incorporation along with other registrations of the GSTIN, ESIC, EPFO, Profession tax Registration, Opening of bank account and Shops and Establishment Registration.
Security Exchange Board of India (SEBI) vide SEBI Circular No. SEBI/HO/CFD/CMD-2/P/CIR/2021/567 dated May 31, 2021 has notified “Format of compliance report on Corporate Governance by Listed Entities” as per the provisions of Regulation 27(2) of SEBI (LODR) Regulations, 2015 (“Listing Regulations”).
The SEBI has issued a new format for the Compliance Report on Corporate Governance in which it has added a new Annexure – IV.
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Please refer the attached updated pdf file (as on 28.05.2021) for the list of MCA forms for which additional fee waiver is made available as per MCA Circular no. 06/2021 and 07/2021. Stakeholders may please take note and plan accordingly.
MCA weblink: https://www.mca.gov.in/bin/dms/getdocument?mds=hDZggIIF02cA%252FGWtstDmRQ%253D%253D&type=open
