In this edition we have tried to bring to your notice the latest amendment that followed in the month of June, 2021 issued by MCA.
Companies (Incorporation) Fourth Amendment Rules, 2021
In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby further amend the Companies (Incorporation) Rules, 2014, these rules may be called the Companies (Incorporation) Fourth Amendment Rules, 2021 & they shall come into force on the date of their publication in the Official Gazette. It amends rule 38A of Companies (Incorporation) Rules, 2014. Read More: https://www.mca.gov.in/bin/dms/getdocument?mds=sbRk0d1avtQVQZrw%252BKS2GA%253D%253D&type=open
Companies (Meetings of Board and its Powers) Amendment Rules, 2021
In exercise of the powers conferred by sections 173, 177, 178 and section 186, read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby further to amend the Companies (Meetings of Board and its Powers) Rules, 2014, and these rules may be called the Companies (Meetings of Board and its Powers) Amendment Rules, 2021 & they shall come into force on the date of their publication in the Official Gazette.
Through this Amendment, Rule 4 related to the matters not to be dealt with in a meeting through video conferencing or other audiovisual means has been omitted. Read more: https://www.mca.gov.in/bin/dms/getdocument?mds=zwpAcIfQhKOgB8vwf%252FztbA%253D%253D&type=open
Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021
In exercise of the powers conferred by section 150 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby amend the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019, and these rules may be called the Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021 & they shall come into force on the date of their publication in the Official Gazette.
It has eased the requirement for aspiring as well as serving independent directors on the board of companies to get their names included in an official database of eligible professionals. Read more: https://www.mca.gov.in/bin/dms/getdocument?mds=WKw7cnmeWvFV%252BpCpYpqgrg%253D%253D&type=open
Companies (Indian Accounting Standards) Amendment Rules, 2021
It shall come into force on the date of their publication in the Official Gazette. To enable users of financial statements to understand the effect of interest rate benchmark reform on an entity‘s financial instruments and risk management strategy, an entity shall disclose information about the nature and extent of risks to which the entity is exposed arising from financial instruments subject to interest rate benchmark reform, and how the entity manages these risks; and the entity‘s progress in completing the transition to alternative benchmark rates, and how the entity is managing the transition. Read more: https://www.mca.gov.in/bin/dms/getdocument?mds=ItGlPzL9Zdszuby4p%252Bvmbw%253D%253D&type=open
Companies (Accounting Standards) Rules, 2021
It shall come into force on the date of their publication in the Official Gazette. Through these Rules, MCA has notified the Accounting Standards for small and medium companies that revise the turnover and borrowing limits as well as help in making disclosure requirements less onerous. The definition of Small and Medium-Sized Companies (SMCs) under the standards has been revised and accordingly turnover limit has been increased from Rs 50crore to not exceeding Rs 250crore and with enhanced borrowing limits. Read more: https://www.mca.gov.in/bin/dms/getdocument?mds=RKk43Bmg99ksfV0bUGr6XA%253D%253D&type=open
Clarification on passing of ordinary and special resolutions by Companies under Companies Act,2013
MCA has issued clarification for passing general and special resolutions and convening an EGM in unavoidable circumstances and extended the validity of the existing circulars up to December 31, 2021, in light of the current social distancing norms. The circular details guidelines for conducting an EGM for companies that need to provide e-voting facility or have opted for e-voting as per section 108 of the Companies Act, 2013, every listed company and company not having less than 1000 shareholders must mandatorily provide e-voting facility and for companies that do not need to provide e-voting facilities. All other requirement and conditions provided in the said circulars shall remain unchanged. Read more: https://www.mca.gov.in/bin/dms/getdocument?mds=fYGpVQRhK8ssM3lRSs7fsg%253D%253D&type=open