The Rights of the Deceased: Moral Rights Incidental to Copyright Law
- Vanshika Agrawal
- 2024-04-25
The Reliefs Given To Companies Regarding Director Qualification In The Wake Of Covid-19 – As we all know covid-19 has been declared a global pandemic by the world health organization. Several nations have taken drastic measures to fight the spread of the Novel Virus. The alarming rise in the number of cases in India actioned the central government into implementing a nationwide lockdown.
Further, taking cognizance of the disruptions in operations, logistics in addition the workforce caused by the lockdown. The ministry of corporate affairs, the government of India (MCA). The market regulatory- securities and exchange board of India (SEBI), and also the financial institutions- Federal Reserve Bank of India(RBI) announced several relaxations in regulatory and statutory compliances that should be undertaken by the businesses to enable them to keep going this era of disruption caused by COVID-19. During this article, we’ve discussed the varied relaxations permitted to companies for business continuity during this era by the MCA, SEBI, and RBI.
Relaxation of requirements under section 173 of the Businesses Act, 2013 and rule 4 of the businesses( Meeting of the board and its powers) Rules, 2014. Section 173 of the businesses act, 2013 mandates that a minimum of 4 board meetings must be held in an exceedingly year with a niche of no more than 120 days between any two meetings.
Such meetings could also be attended by the administrators either personally or through video conferencing or other audiovisual means which are capable of recording and recognizing the participation of the administrators and recording and storing the proceedings of such meetings together with date and time. However, there are certain matters which cant handle in any meeting held through video conferencing. Rule 4 of the businesses rules,2014 provides that the subsequent matters can’t be prohibited in any meeting held through video conferencing or other audiovisual means:
The MCA vide notification on Christian Holy Day, 2020, amends the above rule-specific from the commencement of the Businesses Amendment Rules, 2020 till June 30, 2020, the meetings on matters observe above, is held through video conferencing or other audiovisual means in accordance with rule 3 of the businesses rules, 2014.
further, MCA has provided a one-time relaxation, allowing a further 60-day gap in between two board meetings till September 30, 2020. Such the most gap between two consecutive meetings of the board shall extend from 120 days to 180 days. Exemption from the need for an independent director meeting, The Companies Act, 2013 mandates that the independent directors of an organization shall hold a minimum of one meeting in an exceedingly fiscal year. Without the attendance of non-independent directors and members of management.
However, MCA vides a general circular has given that just in case the independent director is unable to carry such a gathering. It shall not be view as a violation. Extension of deadline for depositing the number within the deposit repayment reserve.
Section 73(2)(c) of the businesses act, 2013 read with rule 13 of the businesses rules, 2014. Provides that the corporate shall deposit an amount akin to not but 20% of the deposits. Maturing during the subsequent fiscal year. And kept during a scheduled bank in an exceedingly separate checking account called the deposit repayment. Reserve on or before April 30 of every year. The day of the month for creating this reserve for the year 2020-21 has extended to June 30, 2020.
Inclusion of paying funds on tackling COVID-19 as a CSR activity. Section 135of the Businesses Act,2013. Mandates that each company with a net worth of Rupees 500 crore or more. Or turnover of Rupees 1000 crore or more or a profit of Rupees 5 crore or more during the immediately preceding year. Shall spend a minimum of 2% of the typical profits of the corporate made during the three immediately. Preceding financial years to undertake activities as provided within the corporate social responsibility policy of the corporate. Which has activities as per Schedule VII of the businesses act, 2013.
The maturity for filling half-yearly unaudited financial results has extended from April 30, 2020, to May 31, 2020. The maturity date for disclosure extends to May 10, 2020, from April 10, 2020. Relaxation from compliance with certain provisions of the SAST Regulations, 2011.
Further regulation 31 of the SEBI regulations. 2011 provides that the promoter of each company requires to declare that on a yearly basis. That he has not made any encumbrance on the shares held by him. Directly or indirectly. Apart from those already disclosed during the fiscal year. The day of the month for creating this disclosure has extended to June 1, 2020.
The Reliefs Given To Companies Regarding Director Qualification In The Wake Of Covid-19. This pandemic has had a serious impact on the worldwide economy and reports by experts suggest that the economic disruptions. Caused by COVID-19 are way harsher than the financial crisis in 2008, given the abrupt halt in production. With the uncertainty looming ahead folks thanks to the pandemic. These exemptions and relaxations come as a way needed and timely step so as to help companies and ensure their smooth functioning. However, given the disruptions that such businesses would have more responsible during the lockdown. And therefore the time it might consider the businesses to resume post-completion of lockdown. It’s also essential at this stage to contemplate the impact of removing such relaxations once business resumes as was common.
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