Ministry of Corporate Affairs has issued Circulars on May 03, 2021, as Relaxation due to COVID-19, in Companies Act, 2013 in respect of: –
- Form Filings
- Holding of Board Meetings
Circular – 1: Maximum Gap Between Two Board Meetings*
MCA extended the gap between two board meetings by 60 days for the first two quarters of the financial year 2021-22. According to this, the gap between two consecutive Board Meetings may extend to 180 days during the quarter, April to June and July to August.
Eg: if 120 days gap of board meetings falling in between 1st April 2021 to 30th September 2021 then the maximum gap of Board Meeting shall be considered as 180 days.
Eg: if 120 days completing on 30th April then 180 days shall be considered till 30th June.
Circular – 2: Relaxation in additional fees for filing of form after the due date
As per this circular, if the due date of any form (except CHG-1, CHG-4, and CHG-9) falling between 1st April 2021 to 30th May 2020 then those forms can be file without additional fees till 31st July 2021.
Eg: Due date for MSME-1 was 30th April 2021. This date is falling under the above dates. Therefore, this can be file by 31st July 2021.
Circular – 3: Relaxation in time for filing of Charge related form after the due date
Applicability:
As per provisions of Section 77 of Companies Act, 2013 form CHG-1 and CHG-9 relating to Creation and Modification of Charge need to be file in a maximum of 120 days from the date of creation or modification.
Circular shall be applicable in the following Manner:
PART I: If the date of creation or modification of charge is before April 01, 2021.
If the date of creation or modification of charge is before April 01, 2021, but the timeline for filing of such form had not expired under Section 77 (i.e. 120 days) as of April 01, 2021
EG.
The charge created/ modified before April 01, 2021, but as of April 01, 2021, one hundred Twenty Days (120 days) has not expired.
**In other words, we can say that the charge is created or modified on or after December 02, 2020, is eligible for this scheme.
PART II: If the date of creation or modification of charge is between April 01, 2021, to May 31, 2021.
If the date of creation or modification of charge is between April 01, 2021, and May 31 2021 then all such forms shall fall under this scheme.
EG.
- If Charge Created or modified after April 01, 2021, then this scheme is also applicable on all such forms.
Relaxation of TIME/ FEE under Scheme:
PART I: If the date of creation or modification of charge is before April 01, 2021.
TIMELINE
- The period beginning from April 01, 2021, and ending on May 31, 2021, shall not be reckoned for the purpose of filing form u/s 77 & 78.
- In case the form not filed till May 31, 2021, the first day after March 31, 2021, shall be June 01, 2021.
EG.
- If the Charge created/ modified on February 14, 2021, then what shall be the due date as per the scheme.
Ans: Maximum time for filing of form is 120 days. Till March 31, 2021, 45 days passed. The remaining days 75 days. As per the above provision:
-
- If the company files the form between April 01 to May 31, then as form filed after 30 days but before 60 days i.e. 45 days on March 31, therefore, the company is required to pay normal fees as well as additional fees.
- If the Company file form till May 31, then June 01, shall be considered as 46th day for the purpose of fees payable on Charge Form
FEES:
- If the company files the form between April 01 to May 31, then fees applicable on such form as on March 31, required to be pay till May 31.
- If the Company file form till May 31, then June 01, shall be considered as next day of March 31, for the purpose of fees payable on the Charge Form.
PART II: If the date of creation or modification of charge is between April 01, 2021, to May 31, 2021.
- The period beginning from April 01, 2021, and ending on May 31, 2021, shall not be reckoned for the purpose of filing forms u/s 77 & 78.
- In case the form not filed till May 31, 2021, then June 01 shall be the first day to count 120 days u/s 77.
