Companies Fresh Start Scheme, 2020 and LLP Settlement Scheme, 2020

PDF version of the following is available at: CFSS and LLPSS

Companies Fresh Start Scheme, 2020

Introduction

MCA has come up with the Companies Fresh Start Scheme, 2020 (“CFSS, 2020” or “the Scheme”) to give a bundle of benefits to corporates who have forms pending to be filed vide Circular dated 30th March, 2020. This comes in the wake of the COVID-19 crisis as the Government wants to ease the burden on the corporates and their employees during this difficult period by giving them sufficient time to comply with law as well as reducing the financial burden. The full text of the Scheme can be accessed here: https://www.mca.gov.in/Ministry/pdf/Circular12_30032020.pdf

Further, MCA had also announced a slew of measures on 24th March, 2020 in the wake of the ongoing COVID crisis. These can be accessed here: https://www.mca.gov.in/Ministry/pdf/Circular_25032020.pdf

Let us take a look at the Scheme and the measures in the form of FAQs.

What is CFSS, 2020?

CFSS, 2020 is a one-time opportunity given to the corporates to enable them to complete their pending compliances by filing necessary documents including annual filings without being subject to additional fees on account of delay.

What are the benefits under the Scheme?

The benefits under the Scheme are triple:

  • Condoning the delay in filing of documents in so far as it relates to charging of additional feese. No additional fee is involved. Only normal fee needs to be paid during the currency of the Scheme.
  • Granting of immunity from launching of prosecution or proceedings for imposing penalty on account of delay associated with certain filings.
  • The Scheme gives an opportunity to inactive companies to get their companies declared as ‘dormant company’ under Sec. 455 of the Act by filing a simple application at a nominal fee (i.e. e-Form MSC-1 with normal fee) thereby ensuring they remain on the Register of Companies with minimal compliance (or) they can apply for striking off the name of the company under Sec. 248(2) by filing e-Form STK-2 with applicable fees.

What is the validity period of the Scheme?

The Scheme is valid from 01.04.2020 to 30.09.2020.

Which companies can avail of the Scheme?

Any “defaulting company” is permitted to file belated documents which were due for filing on any given date in accordance with the provisions of the Scheme. “Defaulting Company” means a company defined under the Companies Act, 2013 and which has made a default in filing of any of the documents, statements, returns, etc. including annual statutory documents on the MCA-21 registry.

[However, it must be noted that all documents cannot be filed and certain companies cannot avail of the Scheme. Only companies with “Active” status can file the documents under the Scheme. If a company is in “ACTIVE-non-compliant” status, it has to file Form ACTIVE and then get the benefits under the Scheme. However, Form ACTIVE cannot be filed unless annual filing and certain other filings are done. So, the Scheme essentially seems to be unavailable for companies with “ACTIVE-non-compliant” status. It must, however, be noted that the late filing fee for “ACTIVE non-compliant” companies of Rs. 10,000/- has been waived till 30.09.2020.]

What will happen to the defaulting companies which do not take the opportunity?

Para 7 of the Scheme says that at the conclusion of the Scheme, the designated authority (RoC having jurisdiction) shall take necessary action under the Act against the companies who have not availed of the Scheme and are in default of filing these documents in a timely manner.

Are there any companies which cannot avail of the Scheme?

Yes, sub-paragraph (ix) of para 6 of the Scheme lists the following types of companies for which the Scheme is not applicable:

  • Companies against which action for final notice for striking off the name under Sec. 248 of the Act has already been initiated by the designated authority (RoC having jurisdiction);
  • Companies which have already applied for striking off their names under Sec. 248;
  • Companies which have amalgamated under a scheme of compromise or arrangement under the Act;
  • Companies which have already filed application for obtaining dormant status under Sec. 455 of the Act;
  • Vanishing companies.

Which documents can be filed under the Scheme?

The list of documents which can be filed under the Scheme are given in the MCA portal in this link: https://www.mca.gov.in/Ministry/pdf/CFSS2020_02042020.pdf. These are reproduced below for the reference of the readers.

There are totally 64 Forms which companies can file. Of these Forms, 54 are under Companies Act, 2013 and 10 are under Companies Act, 1956. The Forms under Companies Act, 1956 are as follows: Forms 23C, 20B, 21A, 23B, 23D, 23AC, 23AC XBRL, (23ACA?), 66, A-XBRL, I-XBRL. (Form 23ACA is not given in the list; however, since Form 23AC and 23AC XBRL are given we can assume it is included and then total number of forms will be 65).

The important point to be noted here is that, the Scheme is not applicable in respect of increase in authorized capital (Form SH-7) and charge-related documents (Forms CHG-1, CHG-4, CHG-8, CHG-9).

The list of Forms which can be filed by companies is reproduced below:

S. No. Form No. Description
1 23C Appointment of Cost Auditors
2 MR-2 Form of Application to the Central Government for approval of appointment or reappointment and remuneration or increase in remuneration or waiver for excess or over payment to managing director or whole remuneration to directors time director or manager and commission or
3 ADT-2 Application for removal of auditor(s) from his/their office before expiry of term
4 NDH-2 Application for extension of time
5 DIR-3C Intimation of Director Identification Number by the company to the registrar
6 INC-12 Application for grant of License under section 8
7 MSC-1 Application to ROC for obtaining the status of dormant company
8 DIR-12 Particulars of appointment of directors and the key managerial personnel and the changes among them
9 INC-4 Intimation for Change in Member/Nominee
10 INC-6 One Person Company – Application for Conversion
11 INC-22 Notice of Situation or Change of situation of Registered Office of the Company
12 INC-27 Conversion of public company into private company or private company into public company
13 20B Annual Return
14 21A Annual Return for company having no share capital
15 23B Notice by Auditor
16 23D Information by cost auditor to Central Government
17 23AC Filing balance sheet and other documents with the Registrar
18 23ACXBRL Form for filing XBRL document in respect of balance sheet and other documents with the Registrar.
19 Form 66 Form for submission of Compliance Certificate
20 AOC-4 Form for filing financial statement and other documents with the Registrar
21 AOC-4 CFS Form for filing consolidated financial statements and other documents with the Registrar
22 AOC- 4(XBRL) Form for filing XBRL document in respect of financial statement and other documents with the Registrar
23 ADT-1 Information to the Registrar by company for appointment of auditor
24 ADT-3 Notice of Resignation by the Auditor
25 BEN-2 Return to the Registrar in respect of declaration under section 90
26 CRA-2 Form of Intimation of appointment of cost auditor by the company to Central Government
27 CRA-4 Form for filing Cost Audit Report with the Central Government
28 DPT-3 Return of deposits
29 DPT-4 Statement regarding deposits existing on the commencement of the Act
30 GNL-2 Form for submission of documents with the Registrar
31 INC-5 One Person Company- Intimation of exceeding threshold
32 IEPF-1 Statement of amounts credited to the Investor Education and Protection Fund
33 IEPF-2 Statement of unclaimed or unpaid amounts
34 IEPF-3 Statement of shares and unclaimed or unpaid dividend not transferred to the Investor Education and Protection Fund
35 IEPF-4 Statement of shares transferred to the Investor Education and Protection Fund
36 IEPF-6 Statement of unclaimed or unpaid amounts to be transferred to the Investor Education and Protection Fund
37 IEPF-7 Statement of amounts credited to IEPF on account of shares transferred to the fund
38 IEPF-5 e-verification report Application to the authority for claiming unpaid amounts and shares out of Investor Education and Protection Fund (IEPF) – E-verification report
39 I-XBRL Form for filing XBRL document in respect of cost audit report and other documents with the Central Government
40 MGT-7 Annual Return
41 MR-1 Return of appointment of key managerial personnel
42 MSC-3 Return of dormant companies
43 NDH-1 Return of Statutory Compliances
44 NDH-3 Return of Nidhi Company for the half year ended
45 NDH-4 Application for declaration as Nidhi Company and for updation of status by Nidhis
46 PAS-3 Return of allotment
47 SH-11 Return in respect of buy-back of securities
48 A-XBRL Form for filing XBRL document in respect of compliance report and other documents with the Central Government
49 DIR-3 KYC/Web form Application for KYC of Directors
50 FC-1 Information to be filled by Foreign company
51 FC-2 Return of alteration in the documents filed for registration by foreign company
52 FC-3 Annual accounts along with the list of all principal places of business in India established by foreign company
53 FC-4 Annual Return of a Foreign Company
54 INC-22A Active Company Tagging Identities and Verification (ACTIVE)
55 INC-20A Declaration for commencement of business
56 AOC-5 Notice of address at which books of account are maintained
57 DIR-11 Notice of resignation of a director to the Registrar
58 GNL-3 Particulars of person(s) or key managerial personnel charged or specified for the purpose of sub-clause (iii) or (iv) of clause 60 of section 2
59 INC-20 Intimation to Registrar of revocation/surrender of license issued under section 8
60 INC-28 Notice of order of the Court or Tribunal or any other competent authority
61 MGT-6 Return to the Registrar in respect of declaration under section 89 received by the company
62 MGT-10 Changes in shareholding position of promoters and top ten shareholders
63 MGT-14 Filing of Resolutions and agreements to the Registrar under section 117
64 MGT-15 Form for filing Report on Annual General Meeting

 

How to apply for the certificate of immunity under the Scheme?

The application has to be made electronically in the Form CFSS-2020 after closure of the Scheme and after the documents are taken on record or approved by the Designated Authority but not after 6 months from date of closure of the Scheme. No fee is payable on this Form. Based on the details in the Form, an immunity certificate in respect of the documents filed under this Scheme shall be issued by the Designated Authority i.e. RoC having jurisdiction over the registered office of the company.

What is the effect of immunity?

As per Para 6, sub-para (ix), the Designated authority concerned shall withdraw the prosecutions pending, if any, before the courts and adjudication proceedings in respect of defaults for which immunity is granted (other than those where orders for conviction by court / order imposing penalty under adjudication have been passed but appeal is not preferred).

What is the extent of immunity granted?

Immunity is granted only in respect of i) prosecution or ii) proceedings for imposing penalty (as the case may be) to the extent pertaining to any delay associated with the filings of related documents. Immunity is NOT granted in respect of any substantive non-compliance of the Act.

It is specifically mentioned in the Scheme that any other consequential proceedings including any proceedings involving interests of any shareholder qua the company or its directors or KMP would not be covered by such immunity.

For example, while the delay in filing return of allotment under private placement is offered immunity, utilisation of money received under the private placement offer, if any, before filing the return of allotment would not be offered immunity.

Is grant of immunity subject to any other conditions?

  • Yes; if the defaulting company or its officer in default, has filed any appeal before any competent court or authority, against any notice issued / complaint filed / order passed by a court / order passed by adjudicating authority for violation of any provisions of the Companies Act, 1956 or Companies Act, 2013, in respect of which the application is made under the Scheme, the applicant shall withdraw such appeal and provide proof of withdrawal of appeal when applying for immunity certificate.
  • Immunity shall not be applicable in the matter of any appeal pending before the court of law and in case of management disputes of the company pending before any court or tribunal.
  • Immunity shall not be granted in case any court has ordered conviction in any matter, or an order imposing penalty has been passed by an adjudicating authority under the Act and no appeal has been preferred against such orders of the court or adjudicating authority, before the Scheme has come into force.

[To conclude, it seems that the Scheme is applicable only where there has been no order passed by a court or adjudicating authority, or if such an order is passed, appeal has been filed and withdrawn. If no appeal has been filed in respect of such an order, the applicability is not clear; however, these have been clarified in the webinar as given here. The Scheme is applicable if the prosecution or adjudication process is pending and orders are not yet issued.]

Whether any relaxation is given to the cases of delayed filing of documents where penalty was imposed under adjudication but no appeal has been preferred?

Where the last date of filing such appeal falls between 1st March, 2020 to 31st May, 2020, a period of 120 additional days shall be allowed with effect from such last date to all companies and their officers for filing the appeal before Regional Director. In respect of such cases, no prosecution would be initiated against the company or its officers for non-compliance of the order of the Adjudicating Authority as far as it relates to delayed filing.

What were the announcements made by MCA on 24th March, 2020?

These announcements were given vide General Circular No. 11/2020 dated 24th March, 2020, which are available here: https://www.mca.gov.in/Ministry/pdf/Circular_25032020.pdf

These are as follows:

  • No additional fees shall be charged for late filing during the moratorium period from 1st April, 2020 to 30th September, 2020 in respect of any document, return, statement, etc. to enable companies/LLPs to make a ‘Fresh Start’ (This has been announced vide CFSS, 2020 and LLP Settlement Scheme, 2020, as being discussed.)
  • The mandatory requirement of holding Board meetings within the intervals given in Sec. 173, stands extended by 60 days till next two quarters. Hence, the gap between two meetings can be upto 180 days for the next two quarters, instead of the maximum gap given in the Section i.e. 120 days.
  • CARO, 2020 shall be made applicable only from financial year 2020-21 instead of from financial year 2019-20.
  • For the financial year 2019-20, if the mandatory independent directors’ meeting for a company was not able to be held, it shall not be viewed as a violation.
  • The requirement to create Deposit Repayment Reserve of 20% of deposits maturing during the financial year 2020-21 before 30th April, 2020 shall be allowed to be complied with till 30th June, 2020.
  • In respect of debentures, the requirement to invest or deposit at least 15% of amount of debentures maturing, before 30th April, 2020 may be complied with till 30th June, 2020.
  • In respect of newly incorporated companies, an additional time of 180 days is allowed to file the declaration of commencement of business (i.e. 180 days + 180 days). (However, the cut-off dates for companies who can avail of this benefit is not given; we may take it that any company whose first 180 days is not yet over as on 24-03-2020 may take the opportunity).
  • Non-compliance of minimum residency in India for a period of at least 182 days by at least one director (resident director) shall not be treated as a violation for the financial year 2019-20.

LLP Settlement Scheme, 2020

Introduction

MCA had announced the LLP Settlement Scheme, 2020 (“the Scheme”)vide General Circular No. 6/2020 dated 04/03/2020, which is available here: https://www.mca.gov.in/Ministry/pdf/GeneralCircular06_04032020.pdf

Further, when the CFSS, 2020 has been announced, some of the benefits have been extended to LLPs also. The modification to the LLP Settlement Scheme, 2020 was made vide General Circular No. 13/2020 dated 30/03/2020, which is available here: https://www.mca.gov.in/Ministry/pdf/Circular13_30032020.pdf

Let us have a look at the features of the Scheme in the form of FAQs.

What are the benefits of LLP Settlement Scheme, 2020?

As part of Government’s efforts to promote ease of doing business, the Scheme is offered as a one-time opportunity in additional fees to the defaulting LLPs to make good their default by filing the pending documents.

  • No additional fee: Originally, the Scheme proposed that an additional fee of Rs. 10/- per day of delay will be charged for every document filed under the Scheme subject to a maximum of Rs. 5,000/- per document. However, as per the modification to the Scheme announced on 30th March, 2020, NO ADDITIONAL FEES shall be payable.
  • Immunity: Apart from this, immunity from prosecution by the Registrar shall be offered to the LLPs which have made good the default under this Scheme.

What is the validity period of the Scheme?

The Scheme was originally made valid till 13th June, 2020. As per the modification to the Scheme announced on 30th March, 2020, now the Scheme is valid from 1st April, 2020 till 30th September, 2020.

Which documents can be filed under the Scheme?

Unlike CFSS, 2020, only those belated documents which were due for filing till 31st August, 2020 can be filed under the Scheme. Further, only the certain documents may be filed under the Scheme. The list as originally given under the Scheme included: Form 3, Form 4, Form 8 and Form 11. The term “belated documents” has been introduced in the modification which means all documents or forms which are required to be filed in MCA-21 Registry under the provisions of the LLP Act, 2008 and the rules made thereunder. Hence, the following list of documents has been uploaded in the MCA portal as being available for filing under the Scheme:

Form 27 LLP Form for registration of particulars by Foreign Limited Liability Partnership (FLLP
FORM 3 Information with regard to limited liability partnership agreement and changes, if any, made therein
FORM 8 Statement of Account & Solvency
FORM 15 Notice for change of place of registered office
FORM 11 Annual Return of Limited Liability Partnership (LLP)
FORM 4 Notice of appointment, cessation, change in name/ address/designation of a designated partner or partner and consent to become a partner/designated partner
FORM 5 Notice for change of name
FORM 12 Form for intimating other address for service of documents
FORM 22 Notice of intimation of Order of Court/ Tribunal/CLB/ Central Government to the Registrar
FORM 31 Application for compounding of an offence under the Act
FORM 23 Application for direction to Limited Liability Partnership (LLP) to change its name to the Registrar
Form 29 LLP Notice of (A) alteration in the certificate of incorporation or registration; (B) alteration in names and addresses of any of the persons authorised to accept service on behalf of a foreign limited liability partnership India of FLLP (D) cessation to have a place of business in India (FLLP) (C) alteration in the principal place of business in

 

Which LLPs cannot avail of the opportunity?

The Scheme shall not apply to LLPs which have made application in Form 24 for striking off the name as per Rule 37(1) of the LLP Rules, 2009.

What will happen to the defaulting LLPs which do not take the opportunity?

Para 9 of the Scheme says that at the conclusion of the Scheme, the RoC shall take necessary action under the Act against the LLPs who have not availed of the Scheme and are in default of filing these documents in a timely manner.

Specific Questions raised and answered during ICSI Webinar

The webinar conducted by ICSI can be accessed here: https://www.youtube.com/watch?v=In0YCAOLZEk&t=3330s. The following is a compilation of the various Q&As.

Can delayed filing of Form MGT-14 be made without filing Form CG-1 for condonation of delay?

As far as Form MGT-14 is concerned, if it is filed beyond 30 days, there is no need to file for condonation of delay during the currency of the Scheme. https://youtu.be/In0YCAOLZEk?t=1353

However, the question was raised how would the SRN of Form INC-28 in Form MGT-14. It was once again clarified that the changes in process are with respect to only the additional fees and not with respect to the procedure. Hence, the other view taken was that filing of Form CG-1 for condonation of delay must be adhered to and that the only change was that Form MGT-14 would not attract additional fees.

A Ltd. has received order from Regional Director for conversion to a private limited company in June 2019. In case of filing of Form INC-27 with delay, will the delay be condoned?

https://youtu.be/In0YCAOLZEk?t=1490 Here again, the opinion was that there is no change in the procedure and the additional fee alone would get waived.

There is no relaxation as far as procedural aspects are concerned. If there is a requirement for condonation, one has to move the condonation application first and then he can get the benefit of the Scheme.

Further, it was suggested that in this case on filing of Form INC-27 the issue may be flagged by way of mail in order that the approval may be expedited by escalating it as urgent.

Will the immunity act as a reversal or roll-back of disqualification of directors?

No, there is no cure for disqualification of directors. The immunity acts only in respect of delayed filing and has no effect on the disqualification of directors which has already happened by virtue of law. This was the view taken in the webinar, which can be accessed here: https://youtu.be/In0YCAOLZEk?t=1617

This point is again reiterated here: https://youtu.be/In0YCAOLZEk?t=2096

If all directors of a company are disqualified, how can a company take advantage of the Scheme?

The position taken in the webinar is that back-end process for inclusion of a new director must be followed, after which the steps may be taken to file the pending documents. (However, it must be noted that if the company is “ACTIVE non-compliant” steps should be taken to rectify the situation and then documents can be filed under the Scheme.) https://youtu.be/In0YCAOLZEk?t=2896

Can a company file Forms under the Scheme if the Directors’ status is “Deactivated due to non-filing of DIR-3 KYC”?

As per MCA website, DIN holders of DINs marked as ‘Deactivated’ due to non-filing of DIR-3KYC/DIR-3 KYC-Web and those Companies whose compliance status has been marked as “ACTIVE non-compliant” due to non-filing of Active Company Tagging Identities and Verification(ACTIVE) e-form are encouraged to become compliant once again in pursuance of the General Circular No. 11 dated 24th March, 2020 & General Circular No.12 dated 30th March 2020 and file DIR-3KYC/DIR-3KYC-Web/ACTIVE as the case may be between 1st April, 2020 to 30th September, 2020 without any filing fee of INR 5000/INR 10000 respectively.

Can a company which was earlier struck off and now revived by NCLT take the benefit under the Scheme?

Yes, if the current status is Active, it can take the benefit under the Scheme. However, if the company is “ACTIVE – non-compliant” it should file Form ACTIVE first. Same applies in case the directors’ status is “Deactivated due to non-filing of DIR-3KYC”. https://youtu.be/In0YCAOLZEk?t=1853

It was also mentioned that in case of directors whose DIN are deactivated due to non-filing of ACTIVE form by company, such directors can activate their DIN during the moratorium period. Then they can file the ACTIVE form and then file all other forms.

What relief can an LLP claim which has filed documents under the LLP Settlement Scheme, 2020 by paying additional fees upto Rs. 5,000/- per document? Can it claim refund?

As the modification to the Scheme does not take retrospective effect and only takes prospective effect i.e. with effect from 1st April, 2020, refund cannot be availed for filings made earlier under the previous Scheme. https://youtu.be/In0YCAOLZEk?t=1975 Further, LLPs must ensure that the due date of the documents file on or before 31st August, 2020.

How can struck-off companies take the benefit under the Scheme?

They have to revive themselves by applying to NCLT and then after getting the Order of revival and filing it with RoC, they can take the benefit under the Scheme. This is reiterated a few times in the webinar. Once such instance is: https://youtu.be/In0YCAOLZEk?t=3089

Is there any upper limit to the number of forms which may be filed?

No.

On a question in respect of adjudication and appeals…

The three stages towards immunity in this case are adjudication, appeal and immunity.

If the RoC has adjudicated the matter and appeal is yet to be filed and the 60 days is over; the appeal may be filed before the RD within the additional time period of 120 days given. In the meantime, the form may be filed and before RD a plea can be made that the Form was filed under the Scheme and that the appeal may be disposed of. The appeal has to be filed; otherwise there will not be any immunity in this case. https://youtu.be/In0YCAOLZEk?t=2322

In case adjudication order has been passed and appeal is not yet filed and the time limit for filing appeal is not over, should appeal be filed and then withdrawn and then immunity can be claimed?

Similar view taken as above. https://youtu.be/In0YCAOLZEk?t=2533

Private limited company has various exemptions which are subject to no default in filing of financial statements and annual return. Upon filing, can the companies claim the exemptions afresh?

The exemptions may be claimed prospectively. https://youtu.be/In0YCAOLZEk?t=2620

Is the Scheme available for application for incorporation following name approval? Will the time limit of 20 days for name reservation be extended?

The view given in the webinar was that the Scheme per se is not applicable for name reservation or incorporation. However, on case-to-case basis, they may be considered on raising ticket. https://youtu.be/In0YCAOLZEk?t=2712

Whether foreign companies are also covered under the Scheme?

Yes. https://youtu.be/In0YCAOLZEk?t=2865

Regarding inactive companies…

https://youtu.be/In0YCAOLZEk?t=3162 Existing procedure applies regarding filing Form MSC-1. They can also file for strike off by filing Form STK-2.

In case the restoration order cannot be obtained by the last date of the Scheme; can the Scheme be availed after the expiration of the Scheme?

No; revival needs to happen during the currency of the Scheme. https://youtu.be/In0YCAOLZEk?t=3371

Will the Scheme be applicable for the companies which have not yet filed the financial statements for the financial year 2018-19?

Yes. Without additional fee. https://youtu.be/In0YCAOLZEk?t=3424

The company has obtained extension of AGM for last two financial years 201718 and 2018-19 and they have done annual filing with additional fees. Can the defaults under Sec. 96 for non-holding of AGM within given time also be compounded under the Scheme?

No. https://youtu.be/In0YCAOLZEk?t=3471

Why charge forms are outside the Scheme?

Since charges have a lot of ramifications in respect of liquidation or insolvency under IBC, and also under other laws, the Scheme cannot provide for reprieve in respect of charge-related forms. https://youtu.be/In0YCAOLZEk?t=3750

Whether the Scheme is also applicable to Nidhi companies?

Yes, provided it is in Active Status. https://youtu.be/In0YCAOLZEk?t=3813 and https://youtu.be/In0YCAOLZEk?t=5078 Wherever additional fee is there, it is relaxed now.

Is MSME-Form-I which are pending are covered?

Since there is no fee for MSME forms, there is no question of additional fee and hence, no question of applicability of Scheme. https://youtu.be/In0YCAOLZEk?t=3854

If the forms pertaining to a company have not been filed under the CA 1956 or under CA 2013, will the present company secretary be held liable in respect of such default prior to his appointment?

As long as there is no pending management dispute, the forms can be filed under the Scheme and immunity can be applied for. https://youtu.be/In0YCAOLZEk?t=4538

Can INC-28 be filed after 30 days or other time given by NCLT?

First, the delay must be condoned by the Central Government and then the Form can be filed under the Scheme. https://youtu.be/In0YCAOLZEk?t=4954

Is the Scheme applicable for extension in respect of enrolling with Independent Directors’ Databank?

No. https://youtu.be/In0YCAOLZEk?t=5045

Why “Enquire Fee” facility is still showing additional fees?

During the currency of the Scheme, in respect of Forms mentioned, no additional fee would be charged. For the currency of the Scheme, the fee shown under the facility can be ignored as this is a permanent facility and the Scheme is temporary. https://youtu.be/In0YCAOLZEk?t=5166 and https://youtu.be/In0YCAOLZEk?t=5991

What are the reasons for excluding Form SH-7 from the Scheme?

Form SH-7 is generally filed by growing going concerns. Hence, they are expected to make due compliance with law. https://youtu.be/In0YCAOLZEk?t=5217

Whether separate board resolution is required for filing Form CFSS and the verification?

The resolution should be passed after the commencement of the Scheme. https://youtu.be/In0YCAOLZEk?t=5342

Is delay in holding AGM be condoned under the Scheme?

No. https://youtu.be/In0YCAOLZEk?t=5461

If the DSCs are locked away in office, is there any provision for signing the forms without DSC?

An emphatic ‘No’. https://youtu.be/In0YCAOLZEk?t=5770

Whether a company which is in IBC can avail of the Scheme?

Yes, as long as the status is ‘Active’. https://youtu.be/In0YCAOLZEk?t=6129

Since induction of new directors vide back-end process takes time at RoC’s end, is there any solution proposed for this?

Yes, instructions may be given to the officers. https://youtu.be/In0YCAOLZEk?t=6189

A company is in the process of shifting registered office from state to state. However, due to lockdown, the company is unable to serve notice on the Chief Secretary and RoCs. Will the delay in filing Form INC-23 be condoned?

This will be examined and sorted out. https://youtu.be/In0YCAOLZEk?t=6317

Is the Scheme available in respect of documents filed before the currency of the Scheme?

No. https://youtu.be/In0YCAOLZEk?t=6546

 

Disclaimer: The views given in the webinar are only reproduced for the purpose of information of readers. The other views given in the note are based on the author’s understanding of the circulars which have been mentioned here. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided in this note, I assume no responsibility therefor. Users of this information are expected to refer to the relevant existing provisions of the relevant law. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. In no event shall I shall be liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information.

 

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