Corporate law Update- January, 2019

You need not worry or make yourselves sleepless about the World; It will go on without you

-Swami Vivekanada

Monthly Update Journal

Dear Sir/Madam,

Happy New year to you!. It’s been more than a month since I wrote an update letter to you. There is so much to share with you this time. Hope you will read it and give me your feedback.

Since the introduction of Companies Act, 2013, managing the compliance of a company is nonetheless than a roller coaster ride. In contrast to its predecessor, this act came with lot of “ifs and buts” by giving ample room to bureaucracy to flux their muscles and show their strength. There are many untimely and complex compliance requirements coming out of the blue which is snatching the peaceful time of Companies, professionals and all its stakeholders. The intention of all these exercises may be for good but the way in which it is being implemented is bit suffocating.

Filing of annual returns.

The honey moon period for filing the annual returns of the company such as AOC-4, MGT 7, Secretarial Audit report etc is now over and penalty clause for the non-compliance is up and running. Those who have not yet filed their returns for the FY 17-18 are now facing Rs. 100/- per day penalty and further delay may result in getting show cause notice from the Ministry of Corporate Affairs, followed by prosecution of the Directors and the company. Many of the ROC offices had already started issuing notices to the non-complaint companies. You are requested to reconfirm the status of the filings of your companies and ensure your peace of mind.

One-time intimation of outstanding receipt of money or loan.

The Ministry had come up with a new amendment to the Companies (Acceptance of Deposit)Rules, 2019, wherein which it is mandated on all companies , except Government Companies, to file an one time return of outstanding receipt of money or loan by a company from 01.04.2014 to 22.01.2019 but not considered as deposits, within 90 days from the date of notification of the rules. ie 90 days from 22nd January, 2019.

As per the amendment all the companies have to