Union Ministry of Corporate Affairs has decided to extend relaxations granted to companies and limited liability partnerships (LLPs) in filing statutory documents till December 31 this year. The duration of scheme for relaxation of filing forms regarding creation or modification of charges under the Companies Act has also been extended till the same time. The central government has also allowed companies to hold their extraordinary general meetings (EGMs) through video conference or other audio visual means till the same date. These decisions came on the back of continued disruption faced by the companies on account of COVID-19 pandemic.
The Ministry of Corporate Affairs had introduced a new scheme known as the Companies Fresh Start Scheme, 2020, valid from 01.04.2020 to 30.09.2020 to enable companies to make good their previous defaults. This Scheme has now been extended till 31.12.2020. pic.twitter.com/8MOZa4iEWk— NSitharamanOffice (@nsitharamanoffc) September 28, 2020
The Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013 and the time for conducting EGMs through Video Conference or Other Audio Visual Means also stand extended till 31.12.2020. pic.twitter.com/ZHSkfyGxSL— NSitharamanOffice (@nsitharamanoffc) September 28, 2020
Corporate Affairs Ministry has extended the timeline for Companies Fresh Start Scheme, 2020, which was originally valid from April 1, 2020 to September 30, 2020. The scheme, rolled out in March this year, granted immunity to companies from legal action and penalties over delay in filing statutory documents like annual returns and financial statements. Defaulters were allowed to file the required documents by paying only the normal fees.
Companies Fresh Start Scheme also allowed inactive companies to get themselves declared as 'dormant company' under provisions of the Companies Act.
A similar facility for LLPs, the LLP Settlement Scheme, 2020, has also been extended till December 31. Originally valid from April 1 June 13, the scheme was extended till September 30 to allow LLPs to make good on their defaults.
Corporate Affairs Ministry also announced 'Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013' for creation or modification of charges on funds raised via debt route has been extended till December 31 this year. Companies that raised funds via loans or debentures have to create a charge on their assets or undertakings within or outside India to acquire these instruments. The scheme, introduced on June 17, pardoned delay in regulatory filings of charges on property, assets, or any undertaking created on March 1, 2020.
Considering the restrictions in view of coronavirus pandemic, Centre has also allowed companies to hold their EGMs via video conferencing or other audio visual means (OAVMs) till December 31.