Key Take Away From FM Speech- MCA / IBC Related Matters.

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Key Take Away From FM Speech.

For MCA Related Matters 

1.      For the FY 19-20 It will not be seen as a violation if independent directors cannot hold a single meeting.

2.      If there is a company director who does not comply with the minimum residency requirement (i.e. 182 days in India pursuant to Section 149 of the Companies Act, 2013) it shall not be treated as a violation

3.      For newly incorporated companies, there is a requirement to file declaration on commencement within six months. We are giving them additional six months.

4.      Applicability of The Companies Auditors’ Report Order 2020, shall be made applicable from FY 2020-21 which was supposed to have come into force in 2019-20

5.      Relaxation in holding of board meetings for a period of 60 days till the next two quarters.   

       

6.      MCA 21 Registry Moratorium issued from 1 April till 30^th September

7.      The requirement 20 Deposit Reserve  of Deposit Maturing during the FY 20-21 before 30^th April, 2020. This was shifted to June 2020

8.      Requirement of investing 15% of Debentures maturing during the particular year before 30^th Arpil, 2020 was shifted to June 2020
   
                                                     For IBC Related Matters 

1. The threshold for default is currently Rs 1 lakh raises  to Rs 1 crore.
2. The FM said We may consider suspending Section 7, 9 and 10 of the Insolvency and Bankruptcy Code (IBC), at a later stage, if the current situation continues beyond six months.

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