The Finance Minister, in the light of the Pandemic COVID-19 for companies under the Companies Act and the Insolvency and Bankruptcy Code announced a special relief package.
- For triggering insolvency, the existing threshold of Rs 1 Lac is raised to Rs. 1 Crore.
- If the lockdown situation is continuing beyond April 30, there will also be considerations for suspending Sections 7, 9, 10 of IBC for six months.
- This will b done for the MSMEs struggling due to the lockdown.
- The Ministry also extended the deadline for compliance regime under the Companies Act 2013 till April 30.
- Applicability of Companies (Auditors Report) Order 2020 will be from the Financial Year 2020-2021 instead of 2019-2020.
- Depositing of 15% of debentures maturing in a particular year in specified instruments extended to June 30, 2020 from April 30.
- Newly incorporated companies – filing declaration for commencement of business extended to 6 more months
- No late fee in respect of the MCA 21 Registry; the mandatory requirement for holding board meetings is relaxed for a period of 60 days for the next two quarters.