Relaxation in Corporate Compliances - Atmanirbhar scheme - CoVID19
Relaxation in Corporate Compliances
Under Atmanirbhar Scheme, Due to CoVID 19, Ministry have done relaxation to compliance burden to Corporates. In this editorial we will share brief of such relaxations.
As Ministry of Corporate Affairs already has given many temporary relaxations to corporates like:
· Holding of General Meetings through Video Conferencing
· No additional fees on ROC Fees till 30th September, 2020
· No restriction on holding of Board Meeting through video Conferencing.
I. Decriminalization of Offence under Companies Act, 2013-: There were many non-compliances under companies Act which was treating as criminal offence. Now the penalties has been relaxed and offences become decriminalized. Like defaults involves minor procedural errors.
II. Many non-compoundable offences converted into compoundable offence.
III. Adjudication mechanism shall be use for compounding of some non-compliances by Registrar of Companies. Adjudication mechanism has already been applied by ROC on many non-compliances u/s 454.
IV. Powers of Regional director for Compounding of offence enhances.
V. If NCD (non-Convertible Debenture) of any Private company is listed with stock exchange such company shall be considered as unlisted company under Companies act, 2013.
VI. Companies can directly list their securities in foreign jurisdiction.
Amendments in IBC
1. No Fresh Cases NO Fresh IBC Proceedings can be initiate till next one Year
2. Criterial for IBC Application Changed: Criterial for IBC application increased from 1 lakh to 1 Crore. Fresh IBC application shall be file if claim is Rs. 1 crore or more.
3. Debts: Debts which are due to COVID 19 situations are out of defaults under IBC.