{"id":1535,"date":"2021-01-21T09:56:11","date_gmt":"2021-01-21T09:56:11","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1535"},"modified":"2021-03-17T09:56:55","modified_gmt":"2021-03-17T09:56:55","slug":"amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/","title":{"rendered":"Amendments Made in the Companies Act 2013 between Dec 2020 to Jan 2021"},"content":{"rendered":"\n<p class=\"has-drop-cap\">These days the Ministry\nof Corporate Affairs (MCA) is continuously making amendments in the provisions\nof the Companies Act 2013. In this blog, we will discuss about the Amendments\nMade in the Companies Act 2013 during the period of December 2020 to January\n2021.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a54f5330a408\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a54f5330a408\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Amendments_Made_By_Way_of_Circulars\" title=\"Amendments Made By\nWay of Circulars\">Amendments Made By\nWay of Circulars<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Relaxation_in_Fees_and_Extension_of_Filling_Form_CRA_4\" title=\"Relaxation in Fees and Extension of\nFilling Form CRA 4\">Relaxation in Fees and Extension of\nFilling Form CRA 4<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Relaxation_in_Holding_EGM_Meeting_through_Video_Conference\" title=\"Relaxation in\nHolding EGM Meeting through Video Conference\">Relaxation in\nHolding EGM Meeting through Video Conference<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Relaxation_in_Holding_Board_Meeting_through_Video_Conference\" title=\"Relaxation in\nHolding Board Meeting through Video Conference\">Relaxation in\nHolding Board Meeting through Video Conference<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Relaxation_in_Holding_Annual_General_Meeting_through_Video_Conference\" title=\"Relaxation in\nHolding Annual General Meeting through Video Conference\">Relaxation in\nHolding Annual General Meeting through Video Conference<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Extension_in_the_Applicability_of_CARO_2020\" title=\"Extension in the Applicability of\nCARO 2020\">Extension in the Applicability of\nCARO 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Clarifications_concerning_spending_on_CSR_Funds_for_COVID_%E2%80%93_19\" title=\"Clarifications concerning spending\non CSR Funds for COVID \u2013 19\">Clarifications concerning spending\non CSR Funds for COVID \u2013 19<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Introduction_of_Scheme_for_Condonation_of_Delay\" title=\"Introduction of Scheme for\nCondonation of Delay\">Introduction of Scheme for\nCondonation of Delay<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Date_of_Enforcement\" title=\"Date of\nEnforcement\">Date of\nEnforcement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Applicability_of_Scheme\" title=\"Applicability of Scheme\">Applicability of Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Duration_of_the_Scheme\" title=\"Duration of the Scheme\">Duration of the Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Forms_regarding_which_the_Scheme_is_applicable\" title=\"Forms regarding which the Scheme is applicable\">Forms regarding which the Scheme is applicable<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Fees_Applicable\" title=\"Fees Applicable\">Fees Applicable<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Amendments_Made_By_Way_of_Notifications_in_Rules\" title=\"Amendments Made By\nWay of Notifications in Rules\">Amendments Made By\nWay of Notifications in Rules<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Amendment_in_MCA_Form_SH_7\" title=\"Amendment in MCA Form SH 7\">Amendment in MCA Form SH 7<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Amendment_in_Name_Approval_Rules\" title=\"Amendment in Name Approval Rules \">Amendment in Name Approval Rules <\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Prevailing_Provision_concerning_Name_Reservation\" title=\"Prevailing Provision concerning Name Reservation\">Prevailing Provision concerning Name Reservation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Amended_Provision_concerning_Name_Reservation\" title=\"Amended Provision concerning Name Reservation\">Amended Provision concerning Name Reservation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Amendment_Made_in_the_Provisions_Concerning_the_Independent_Directors\" title=\"Amendment Made in the Provisions Concerning the Independent Directors\">Amendment Made in the Provisions Concerning the Independent Directors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Amendment_Made_in_the_Provisions_Concerning_Compromises_Arrangements_and_Amalgamations\" title=\"Amendment Made in the Provisions Concerning Compromises, Arrangements, and Amalgamations\">Amendment Made in the Provisions Concerning Compromises, Arrangements, and Amalgamations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Amendment_in_Companies_Amendment_Act_2020\" title=\"Amendment in Companies Amendment Act 2020\">Amendment in Companies Amendment Act 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Second_Amendment_in_Companies_Amendment_Act_2020\" title=\"Second Amendment in Companies Amendment Act 2020\">Second Amendment in Companies Amendment Act 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Companies_Corporate_Social_Responsibility_Policy_Amendment_Rules_2021\" title=\"Companies (Corporate Social Responsibility Policy) Amendment Rules 2021\">Companies (Corporate Social Responsibility Policy) Amendment Rules 2021<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Companies_Incorporation_Amendment_Rules_2021\" title=\"Companies (Incorporation) Amendment Rules 2021\">Companies (Incorporation) Amendment Rules 2021<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/swaritadvisors.com\/blog\/amendments-made-in-the-companies-act-2013-between-dec-2020-to-jan-2021\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amendments_Made_By_Way_of_Circulars\"><\/span>Amendments Made By\nWay of Circulars<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The various amendments made by way of\nissuing circulars are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relaxation_in_Fees_and_Extension_of_Filling_Form_CRA_4\"><\/span>Relaxation in Fees and Extension of\nFilling Form CRA 4<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Ministry of Corporate Affairs by way\nof Circular No 38\/ 2020, issued on 01.12.2020, had extended the date of filing\nform CRA 4, together with the fees charged. <\/p>\n\n\n\n<p>Earlier, the date for filing cost audit\nreport for the Financial Year 2019-2020 in form CRA 4 was 30.11.2020, but the\nsame was extended till 31.12.2020.<\/p>\n\n\n\n<p>The reason behind the extension was to\nprovide relief against the disruption caused in COVID \u2013 19 pandemic. <\/p>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs<\/strong><sup><a class=\"text-primary\" href=\"http:\/\/www.mca.gov.in\/Ministry\/pdf\/GeneralCircularNo.38_01122020.pdf\"><em><strong>[1]<\/strong><\/em><\/a><\/sup><strong>: <\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relaxation_in_Holding_EGM_Meeting_through_Video_Conference\"><\/span><strong>Relaxation in\nHolding EGM Meeting through Video Conference<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Ministry of Corporate Affairs by way\nof the Circular No 39\/ 2020, issued on 31.12.2020, had extended the relaxation\nof conducting the Extra Ordinary General Meeting through Video Conferencing\ntill 30.06.2021. Earlier, the companies were allowed to conduct EGM through video\nconference till 31.12.2021.<\/p>\n\n\n\n<p>However, it shall be considerate to note that the said relaxation is given only in respect of EGM or Extra-Ordinary General Meeting. That means companies are not allowed to conduct their AGM through video conferencing.<\/p>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs: <\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relaxation_in_Holding_Board_Meeting_through_Video_Conference\"><\/span><strong>Relaxation in\nHolding Board Meeting through Video Conference<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In view to provide relief in this\npandemic situation, the Ministry of Corporate Affairs (MCA) had extended the\nrelaxation of conducting the Board Meeting through Video Conferencing till\n30.06.2021. Earlier, the companies were allowed to conduct Board Meeting\nthrough video conference till 31.12.2021.<\/p>\n\n\n\n<p>Further, the said relaxation was\nprovided by of Order No G.S.R. 806(E), passed on 30.12.2020. However, it shall\nbe considerate to take into consideration that the said relaxation is provided\nonly with regard to the matters listed Rule 4 of the Companies (Meetings of\nBoard and its Powers) 2014, which are as follows:<\/p>\n\n\n\n<ol><li>Approval\nof the Board Report;<\/li><li>Approval\nof the Annual Financial Statements;<\/li><li>Approval\nof the Prospectus issued;<\/li><li>Approval\nof Audit Committee Meetings;<\/li><li>Approval\nof the matters concerning Merger, Demerger, Amalgamation, Acquisition, and\nTakeover;<\/li><\/ol>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs : <\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relaxation_in_Holding_Annual_General_Meeting_through_Video_Conference\"><\/span><strong>Relaxation in\nHolding Annual General Meeting through Video Conference<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Ministry of Corporate Affairs by way\nof Circular No 02\/ 2021, issued on 13.01.2021, had provided clarifications\nregarding holding of Annual General Meetings through Video Conference. Further,\nthe said circular was in continuation the General Circular No 20\/ 2020, issued\non 05.05.2021\/<\/p>\n\n\n\n<p>As per the circular passed, the companies whose AGMs (Annual General Meetings) were due to be conducted in the year 2020, or has become due in the year 2021, to conduct the same on or before 31.12.2021. Also, it has clarified that the meetings must be conducted based on the requirements mentioned under para 3 and 4 of the General Circular No 20\/ 2020.<\/p>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs: <\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Extension_in_the_Applicability_of_CARO_2020\"><\/span>Extension in the Applicability of\nCARO 2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Ministry of Corporate Affairs by way\nof an Order dated 17.12.2020, had made amendment in the applicability of CARO\n2020. <\/p>\n\n\n\n<p>As per the said order, the date for the\nimplementation of CARO 2020 has been extended till 01.04.2021, which was\nearlier to be 01.04.2020.<\/p>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs: <\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Clarifications_concerning_spending_on_CSR_Funds_for_COVID_%E2%80%93_19\"><\/span>Clarifications concerning spending\non CSR Funds for COVID \u2013 19<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Ministry of Corporate Affairs by way of a Circular No 01\/ 2021, dated 17.12.2020, has clarified that the CSR (Corporate Social Responsibility) Funds spent for carrying out awareness programs or campaigns or public outreach campaigns concerning COVID \u2013 19 vaccine is eligible to be considered as CSR Activity item under (i), (ii), and (xii) of schedule VII of the Companies Act 2013.<\/p>\n\n\n\n<p>The said activity relates to the promotion\nof health care, and includes preventive health care, sanitization, promotion of\neducation, and disaster management as well.<\/p>\n\n\n\n<p>Also, the said notification was in\ncontinuation to the earlier issued Circular No 10\/ 2020, dated 23.03.2020.<\/p>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs: <\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction_of_Scheme_for_Condonation_of_Delay\"><\/span>Introduction of Scheme for\nCondonation of Delay<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Ministry of Corporate Affairs by way of a Circular No 03\/2021, dated 15.01.2021, has declared the implementation of Scheme for Condonation of Delay. In this circular, MCA has clarified that the provisions of the Companies Fresh Start Scheme 2020 or CFSS 2020 are no longer prevalent for various filings done under the provisions of the Companies Act 2013.<\/p>\n\n\n\n<p>Further, as per the Scheme for Condonation of Delay, the companies that are restored under the provisions of section 252 of the Companies Act 2013, on the register kept by ROC (Registrar of Companies)between 01.12.2020 to 31.12.2020, are covered under this scheme.<\/p>\n\n\n\n<p>The details of the Scheme for\nCondonation of Delay are as follows:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Date_of_Enforcement\"><\/span>Date of\nEnforcement<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The said scheme will come into effect\nfrom 01.02.2021.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_of_Scheme\"><\/span>Applicability of Scheme<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>All the companies against whom an appeal\nhas been filed concerning the restoration of name of the company, who were\ndisposed of between 01.12.2020 to 31.12.2020, under section 252 of the\nCompanies Act 2013, with the respective NCLT (National Company Law Tribunal).\nAnd the NCLT has passed an order of restoration for the said company.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Duration_of_the_Scheme\"><\/span>Duration of the Scheme<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The last date for filing any overdue\ne-forms by the companies restored under the said scheme is 31.03.2021. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Forms_regarding_which_the_Scheme_is_applicable\"><\/span>Forms regarding which the Scheme is applicable<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The said scheme is applicable in respect\nof each forms, which the company needs to file with the ROC (Registrar of\nCompanies), except the ones as follows:<\/p>\n\n\n\n<ol><li>Form\nSH 7 (Increase in the Authorized Capital);<\/li><li>CH\n1, CH 4, CH 8, and CH 9 (Charge related Documents);<\/li><\/ol>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fees_Applicable\"><\/span>Fees Applicable<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Every company which has been restored by\nNCLT needs to file the form with ROC, together with the fees prescribed on the\ndate of filing under the provisions of Companies (Registration Offices and\nFees) Rules 2014. However, it shall be significant to state that there is no\nneed to pay any additional fees by the companies on which the said scheme is\napplicable.<\/p>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs: <\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amendments_Made_By_Way_of_Notifications_in_Rules\"><\/span>Amendments Made By\nWay of Notifications in Rules<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The various amendments made in rules by\nway of issuing notifications are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amendment_in_MCA_Form_SH_7\"><\/span>Amendment in MCA Form SH 7<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Ministry of Corporate Affairs by way\nof a Notification No G.S.R. 794(E), dated 17.12.2020, had amended MCA Form SH\n7. Further, the said amendment was made under the provisions of Companies\n(Share Capital and Debenture) Rules 2014.<\/p>\n\n\n\n<p>The said amendment related to the insertion\nof clause (e) in subsection (1) of section 64, which states as follows:<\/p>\n\n\n\n<p>\u201c(e) Cancel Shares which, at the date of\nthe passing of the resolution on that behalf, have not been taken or agreed to\nbe taken by any other person, and diminish the amount of its share capital by\nthe amount of the shares so cancelled.\u201d<\/p>\n\n\n\n<p>That means after the passing of this notification there are in total 7 ways to Alter the Share Capital of the Company.<\/p>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs :<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amendment_in_Name_Approval_Rules\"><\/span>Amendment in Name Approval Rules <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Ministry of Corporate Affairs by way of a Notification, dated 17.12.2020, has amended the provisions of Companies (Incorporation) Rules 2014. The said rules will now be known as Companies (Incorporation) Third Amendment Rules 2020. <\/p>\n\n\n\n<p>Further, the amendment made relates to\nthe introduction of Section 9A, i.e., Extension of Reservation of Names in Some\nCases.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Prevailing_Provision_concerning_Name_Reservation\"><\/span>Prevailing Provision concerning Name Reservation<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>According to the provision of the\nCompanies Act 2013, the maximum tenure for which the name selected remains\nreserved is 20 days. That means if in case the promoter fails to incorporate or\nregister a company within a period of 20 days, then, in that case, the reserved\nname will be expired.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amended_Provision_concerning_Name_Reservation\"><\/span>Amended Provision concerning Name Reservation<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Based on the newly inserted section, the promoter can now avail of an extension in the expiry of name selected by filing Spice+ form after the payment of prescribed fees as follow:<\/p>\n\n\n\n<table width=\"100%\">\n<tbody>\n<tr>\n<td width=\"11%\">\n<p><strong>S. No.<\/strong><\/p>\n<\/td>\n<td width=\"28%\">\n<p><strong>Number of Days<\/strong><\/p>\n<\/td>\n<td colspan=\"2\" width=\"20%\">\n<p><strong>Fees to be Paid<\/strong><\/p>\n<\/td>\n<td width=\"39%\">\n<p><strong>Condition Applicable<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"11%\">\n<p><strong>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/strong><\/p>\n<\/td>\n<td width=\"28%\">\n<p>40 days, starting from the &nbsp;Date of Approval of the Name Selected;<\/p>\n<\/td>\n<td colspan=\"2\" width=\"20%\">\n<p>Rs 1000<\/p>\n<\/td>\n<td width=\"39%\">\n<p>Promoters need to make the payment prior to the expiry of 20 days, starting from the date of approval of the name.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"11%\">\n<p><strong>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/strong><\/p>\n<\/td>\n<td width=\"28%\">\n<p>60 Days, starting from the Date of Approval of the Name Selected;<\/p>\n<\/td>\n<td colspan=\"2\" width=\"20%\">\n<p>Rs 2000<\/p>\n<\/td>\n<td width=\"39%\">\n<p>Promoters need to make the payment prior to the expiry of 40 days, starting from the date of approval of the name.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"11%\">\n<p><strong>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/strong><\/p>\n<\/td>\n<td width=\"28%\">\n<p>60 Days starting from the Date of Approval of the Name Selected;<\/p>\n<\/td>\n<td width=\"20%\">\n<p>Rs 3000<\/p>\n<\/td>\n<td colspan=\"2\" width=\"40%\">\n<p>Promoters need to make the payment prior to the expiry of 20 days, starting from the approval of the name.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs: <\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amendment_Made_in_the_Provisions_Concerning_the_Independent_Directors\"><\/span>Amendment Made in the Provisions Concerning the Independent Directors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Ministry of Corporate Affairs by way\nof a Notification, dated 18.12.2020, have amended the provisions of Companies (Appointment\nand Qualification of Directors) Rules 2014. The said rules will now be known as\nCompanies (Appointment and Qualification of Directors) Fifth Amendment Rules\n2020. <\/p>\n\n\n\n<p>In the said notification the MCA has\ndecided to provide relief to the Independent Directors by making amendments as\nfollows:<\/p>\n\n\n\n<ol><li>MCA has extended the time period to clear the Online Proficiency Exams to two years, starting from the date of inclusion of name in the database;<\/li><li>Any individual or director who has obtained a score of 50 or above shall be considered to have cleared the exam;<\/li><li>Any individual who has been a Director, KMP (Key Managerial Personal) in any Listed Company or <strong><a href=\"https:\/\/swaritadvisors.com\/public-limited-company-registration\" class=\"text-primary\">Public Limited Company<\/a><\/strong> for not less a period of 3 years are exempt from clearing the Online Proficiency Test. Also, it shall be significant to mention that the term \u201cPublic Limited Company\u201d means the entity having the paid up share capital of Rs 10 crores or more;<\/li><\/ol>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs : <\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amendment_Made_in_the_Provisions_Concerning_Compromises_Arrangements_and_Amalgamations\"><\/span>Amendment Made in the Provisions Concerning Compromises, Arrangements, and Amalgamations<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Ministry of Corporate Affairs by way\nof a Notification, dated 17.12.2020, have amended the provisions of Companies (Compromises,\nArrangements &amp; Amalgamations) Rules 2016. The said rules will now be known\nas Companies (Compromises, Arrangements &amp; Amalgamations) Second Amendment\nRules 2020<\/p>\n\n\n\n<p>In the said notification the MCA has\nmade changes as follows:<\/p>\n\n\n\n<ol><li>Addition\nof the Definition of the term \u201cCorporate Action\u201d, which is as follows:<\/li><\/ol>\n\n\n\n<p>\u201cCorporate Action\u201d denotes an action\ntaken by the company pertaining to the transfer of shares, together with the\nbenefits accruing on such shares, such as bonus shares, split, fraction,\nconsolidation of shares, and right issue to the acquirer.<\/p>\n\n\n\n<ul><li>Addition\nof a New Rule namely Rule 26A<\/li><\/ul>\n\n\n\n<p>Under the said rule, the MCA has\nintroduced a new process concerning the Minority Shareholding held in the Demat\nForm;<\/p>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs: <\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amendment_in_Companies_Amendment_Act_2020\"><\/span>Amendment in Companies Amendment Act 2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Ministry of Corporate Affairs by way\nof a Notification, dated 21.12.2020, has declared that out of 65 sections of\nthe Companies Amendment Act 2020, 44 sections have come into force from\n21.12.2020. <\/p>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs: <\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Second_Amendment_in_Companies_Amendment_Act_2020\"><\/span>Second Amendment in Companies Amendment Act 2020<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Ministry of Corporate Affairs by way of a Notification, dated 22.01.2021, has declared that 15 sections of the Companies (Amendment) Act 2020 will come into effect from the date of publication in the official gazette, i.e., 22.01.2021. <\/p>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs:<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Companies_Corporate_Social_Responsibility_Policy_Amendment_Rules_2021\"><\/span>Companies (Corporate Social Responsibility Policy) Amendment Rules 2021<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>By\nexercising the powers provided under section 135 and 469 (1) and (2) of the\nCompanies Act 2013, the Central Government has decided to amend certain\nprovisions of the Companies (Corporate Social Responsibility Policy) Rules\n2014. The said amendment will be known as Companies (Corporate Social Responsibility\nPolicy) Amendment Rules 2021.<\/p>\n\n\n\n<p>Also, these will come into force from the date of publication in the official gazette, 22.01.2021.<\/p>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs:<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Companies_Incorporation_Amendment_Rules_2021\"><\/span>Companies (Incorporation) Amendment Rules 2021<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Recently, the Ministry of Corporate Affairs (MCA), by way of a notification, issued on 25.01.2021, has notified the process to dispose of the application for the conversion of a Public Limited Company into Private Limited Company if in case an objection is raised by the RD (Regional Director). The said amended rules will be known as the Companies (Incorporation) Amendment Rules 2021 and it aims to amend the Companies (Incorporation) Rules 2014.<\/p>\n\n\n\n<p>As\nper these rules if in case the Regional Director receives an objection while\nexamining the application for conversion, then, in that case, the same will be\nfirst recorded in writing by the RD. After that, he will hold a hearing or\nseries of hearings as required within a period of thirty days. Thereafter, he\nwill ask the company to file an affidavit concerning the consensus reached and\nbased on that the regional director will pass an order for either approving or\nrejecting the application, together with the reasons, starting from the date of\nhearing. <\/p>\n\n\n\n<p>However,\nif case no consensus has been reached between the parties involved, then, in\nthat case, the said RD or Regional Director may approve the process of conversion,\nif he is satisfied, that the same is not in against with the interest of\njustice or has not been made in contravention the provisions of the Act.<\/p>\n\n\n\n<p>Also,\nit shall be taken into consideration that the said conversion will not be\npermitted if there is any pending inspection, inquiry, or investigation against\nthe company.<\/p>\n\n\n\n<p><strong>Link to the Official Notification passed by Ministry of Corporate Affairs:<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, we can rightly state that the main reason behind the continuous amendments in regulations by MCA was to provide relief amid COVID-19 pandemic crisis to the stakeholder of every level. <\/p>\n\n\n\n<p>Further, this blog deals in details\nabout the key amendments made by the Ministry of\nCorporate Affairs during the month of December 2020 to January 2021.<\/p>\n\n\n\n<p>Lastly, in case of any other doubt or query, reach out to <strong><a href=\"https:\/\/swaritadvisors.com\/\" class=\"text-primary\">Swarit Advisors<\/a><\/strong>, our proficient experts are there to cater to all your doubts and queries. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>These days the Ministry of Corporate Affairs (MCA) is continuously making amendments in the provisions of the Companies Act 2013. In this blog, we will discuss about the Amendments Made in the Companies Act 2013 during the period of December 2020 to January 2021. Amendments Made By Way of Circulars The various amendments made by [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1538,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50],"tags":[508],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1535"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1535"}],"version-history":[{"count":9,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1535\/revisions"}],"predecessor-version":[{"id":3405,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1535\/revisions\/3405"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1538"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}