{"id":227565,"date":"2020-03-26T12:40:15","date_gmt":"2020-03-26T07:10:15","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=227565"},"modified":"2020-04-01T18:51:41","modified_gmt":"2020-04-01T13:21:41","slug":"special-measures-under-companies-act-2013-and-limited-liability-partnership-act-2008-in-view-of-covid-19-outbreak","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/03\/26\/special-measures-under-companies-act-2013-and-limited-liability-partnership-act-2008-in-view-of-covid-19-outbreak\/","title":{"rendered":"Special Measures under Companies Act, 2013 and Limited Liability Partnership Act, 2008 in view of COVID-19 outbreak"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"color: #008000;\"><strong>In order to support and enable Companies and Limited Liability Partnerships (LLPs) in India to focus on taking necessary measures to address the COVID-19 threat, including the economic disruptions caused by it, the following measures have been implemented by the Ministry of Corporate Affairs to reduce their compliance burden and other risks: &#8211;<\/strong> <\/span><\/p>\n<ol>\n<li style=\"text-align: justify;\">No additional fees shall be charged for late filing during a moratorium period from 01st April to 30th September 2020, in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry, irrespective of its due date, which will not only reduce the compliance burden, including financial burden of companies\/ LLPs at large, but also enable long-standing noncompliant companies\/ LLPs to make a&#8217;fresh start&#8217;. The Circulars specifying detailed requirements in this regard are being issued separately.<\/li>\n<li style=\"text-align: justify;\">The mandatory requirement of holding meetings of the Board of the companies within the intervals provided in section 173 of the Companies Act, 2013 (CA13) (120 days) stands extended by a period of 60 days till next two quarters i.e., till 30th September. Accordingly, as a one time relaxation the gap between two consecutive meetings of the Board may extend to 180 days till the next two quarters, instead of 120 days as required in the CA-13.<\/li>\n<li style=\"text-align: justify;\">The Companies (Auditor&#8217;s Report) Order,2020 shall be made applicable from the financial year 2O2O-2O21 instead of being applicable from the financial year 2019-2020 notified earlier. This will significantly ease the burden on companies &amp; their auditors for the financial year 2019-20. A separate notification has been issued for this purpose.<\/li>\n<li style=\"text-align: justify;\">As per Para Vll (1) of Schedule lV to the CA-13, lndependent Directors (lDs) are required to hold at least one meeting without the attendance of Non-independent directors and members of management. For the financial year 2019-20, if the lDs of a company have not been able to hold such a meeting, the same shall not be viewed as a violation. The lDs, however, may share their views amongst themselves through telephone or e-mail or any other mode of communication, if they deem it to be necessary.<\/li>\n<li style=\"text-align: justify;\">Requirement under section 73(2)(c) of CA-13 to create the deposit repayment reserve of 20% of deposits maturing during the financial year 2020-21 before 30th April 2020 shall be allowed to be complied with till 30th June 2020.<\/li>\n<li style=\"text-align: justify;\">Requirement under rule 18 of the Companies (Share Capital &amp; Debentures) Rules, 2014 to invest or deposit at least 15% of amount of debentures maturing in specified methods of investments or deposits before 30th April 2020, may be complied with till 30th June 2020.<\/li>\n<li style=\"text-align: justify;\">Newly incorporated companies are required to file a declaration for Commencement of Business within &#8216;180 days of incorporation under section 10A of the CA-13. An additional period of 180 more days is allowed for this compliance.<\/li>\n<li style=\"text-align: justify;\">Non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 of the CA-1 3 shall not be treated as a non-compliance for the financial year 2019-20.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>In order to support and enable Companies and Limited Liability Partnerships (LLPs) in India to focus on taking necessary measures to address <\/p>\n","protected":false},"author":8808,"featured_media":209748,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[27634,40012,40219,40221,39858,40220],"class_list":["post-227565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-companies-act","tag-corona-virus","tag-covid-19-threat","tag-economic-disruptions","tag-limited-liability-partnerships","tag-special-measures"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Special Measures under Companies Act, 2013 and Limited Liability Partnership Act, 2008 in view of COVID-19 outbreak | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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relief to law abiding companies and Limited Liability Partnerships in the wake of COVID-19","author":"Bhumika Indulia","date":"April 1, 2020","format":false,"excerpt":"In pursuance of the Government of India\u2019s efforts to provide relief to law abiding companies and Limited Liability Partnerships (LLPs) in the wake of COVID 19, the Ministry of Corporate Affairs (MCA), has introduced the \u201cCompanies Fresh Start Scheme, 2020\u201d and revised the \u201cLLP Settlement Scheme, 2020\u201d which is already\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=350%2C200&ssl=1 1x, 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(https:\/\/www.mha.gov.in\/sites\/default\/files\/MHA%20order%20dt%2015.04.2020%2C%20with%20Revised%20Consolidated%20Guidelines_compressed%20%283%29.pdf) Along with these guidelines, National Directives for COVID-19 Management and Standard Operating Procedure (SOP) for social distancing and hygiene measures\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":229619,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/05\/15\/relief-to-establishments-covered-under-epf-and-mp-act-1952-from-levy-of-penalty-for-delayed-deposit-of-dues-during-lockdown\/","url_meta":{"origin":227565,"position":3},"title":"Relief to establishments covered under EPF and MP Act, 1952 from levy of penalty for delayed deposit of dues during lockdown","author":"Bhumika Indulia","date":"May 15, 2020","format":false,"excerpt":"Due to prolonged lockdown announced by the Govt. to control the spread of COVID-19 and other disruptions due to pandemic, establishments covered under Employees' Provident Fund & Miscellaneous Provisions Act, 1952 are distressed and unable to function normally and pay the statutory contributions in time. Considering the difficulty faced by\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":252474,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/10\/limited-liability-partnership-amendment-bill-2021-passed-by-lok-sabha\/","url_meta":{"origin":227565,"position":4},"title":"Limited Liability Partnership (Amendment) Bill, 2021 passed by Lok Sabha","author":"Bhumika Indulia","date":"August 10, 2021","format":false,"excerpt":"On August 10, 2021, the Limited Liability Partnership (Amendment) Bill, 2021 passed by the Lok Sabha. It was passed by the Rajya Sabha on August 04, 2021. The amendment seeks to amend LLP Act, 2008. Key highlights: De-criminalization of procedural & technical defaults under LLP Act, 2008 will incentivize compliance\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/parliamentSM.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/parliamentSM.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/parliamentSM.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/parliamentSM.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/parliamentSM.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/12\/parliamentSM.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":201053,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/09\/07\/limited-liability-partnership-in-the-wake-of-start-up-era\/","url_meta":{"origin":227565,"position":5},"title":"Limited Liability Partnership in the wake of start-up era","author":"Saba","date":"September 7, 2018","format":false,"excerpt":"by Hetal Doshi*","rel":"","context":"In &quot;Op Eds&quot;","block_context":{"text":"Op Eds","link":"https:\/\/www.scconline.com\/blog\/post\/category\/op-ed\/legal-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/09\/Limited-Liability-Partnership.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/09\/Limited-Liability-Partnership.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/09\/Limited-Liability-Partnership.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/09\/Limited-Liability-Partnership.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/09\/Limited-Liability-Partnership.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/227565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=227565"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/227565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/209748"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=227565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=227565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=227565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}