Initiative By Ministry Of Corporate Affairs To Contain The Spread Of COVID-19

As a part of Government of India’s initiative to ensure active preparation to face the challenge and threat posed by the growing pandemic of COVID-19, the Ministry of Corporate Affairs (MCA) has relaxed the rules with respect to meetings of board of directors and dispensed with the necessity of holding physical meetings on matters relating to approval of financial statements, board report, restructuring etc. up to 30th June 2020. Therefore, till 30th June 2020 the companies can convene meeting through video conferencing for approval of financial statement, board report etc. The MCA is further examining any other relaxations under the Companies Act, 2013, that may be necessitated on account of COVID-19.

Further, in order to meet this urgent and severe health exigency, MCA has also issued an advisory to all companies and Limited Liability Partnership (LLPs) to put in place an immediate plan to implement the “Work from home” policy as a temporary measure till 31st March. 2020, after which the position will be reviewed by the appropriate authorities as per the evolving situation. Also, it has been strictly advised to follow other preventive measures, including Dos & Don’ts advised by public health authorities.

In the advisory note the MCA has also notified the proposed deployment of a simple web form for all companies/LLPs to confirm their readiness to deal with the COVID 19 threat. The web form – CAR (Company Affirmation of Readiness towards COVID 19) shall be filed by an authorized signatory of Companies & LLPs. As per the notification, the web form shall be deployed on the 23rd of March 2020 and all companies/LLPs are requested to report compliance using the above mentioned web service on an instant basis on 23rd of March 2020.