MCA Updates

Rectification of name of Company – No more fine for default

The Companies Amendment Act, 2020, introduced following changes to Section 16 (Rectification of name of Company) of Companies Act, 2013:

  • Within a period of 3 months (as against 6 months earlier) from issue of direction by Central Government (CG) against an application made by proprietor of a Trademark stating that the name of the company is identical or too nearly resembles an existing trademark, the company is required to change its name.

  • Applicability of fine on the company and officer in default in case of any non-compliance to the above mentioned requirement shall be removed and substituted by the clause stating that in case of default the CG shall allot a new name to the company and the company shall be registered in such name and a fresh Certificate of Incorporation shall be issued with the new name allotted by the CG.

Vide Notification dated 22.07.2021, MCA has declared 01.09.2021 as the date on which above mentioned amendments shall come into force.

Open Notification No. S.O. 2904(E) dtd. 22.07.2021

New name allotted by CG – Default u/s 16

MCA has notified vide Notification dated 22.07.2021 that w.e.f. 01.09.2021, a company which fails to change its name withing a period of 3 months from issue of CG order directing the Company to do so, the CG shall allot a new name to the Company.

The name so allotted shall be the letters “ORDNC” (which is an abbreviation of the words “Order of Regional Director Not Complied”), the year of passing of the direction, the serial number and the existing Corporate Identity Number (CIN) of the company. The company is required to mention the words “Order of Regional Director Not Complied (under section 16 of the Companies Act, 2013)” in brackets below the name of company, wherever its name is printed, affixed or engraved.

Open Notification No. 503(E) dtd. 22.07.2021
SEBI Update

Extension of time AGM – top 1000 listed entities

Pursuant to SEBI LODR top 1000 listed entities based on their market capitalisation are required to hold their AGM within 5 months from the end of the Financial Year.

Considering the representations received from ICSI and the listed entities, SEBI vide Circular dated 23.07.2021 has given an extension of 1 month allowing top 1000 listed entities by market capitalisation to hold their AGM within 6 months of end of the FY, as against 5 months.

Open Circular No. SEBI/HO/CFD/CMD1/P/CIR/2021/602 dtd. 23.07.2021
IBBI updates

Monetary Penalty to be credited to Fund

IBBI vide notification 22.07.2021 has instructed Insolvency Professional Agencies to credit the monetary penalty levied by the Disciplinary Committee promptly into a Fund constituted under Section 222 of the Code.

Earlier the amount was to be credited into a Fund constituted under Section 224 of the Code.

Open Circular No. IBBI/2021-22/GN/REG076 dtd. 22.07.2021

Amendments to IP Regulations

IBBI vide notification dated 22.07.2021 notified the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2021. Key highlights of the Amendments are:

  • Qualification: Bachelors in Law and full time P.G.Diploma in management included as part of eligibility qualification and experience

  • Registration as an Insolvency Professional for a Limited Period – Omitted

  • IP not to have more than 10 assignments as Resolution Professional in CIRP, of which not more than 3 shall have admitted claims exceeding 1000 Crore rupees each.

  • Criteria for Registration of IPAs i.e. majority equity shareholding by IPs who are it’s director and the stipulated networth of not less than 1crore, to be complied with by 30.12.2021.

    1. Board to acknowledge application within 7 days

    2. Board to approve application within 60 days or seek for further documents within 30 days

Open Circular No. No. IBBI/2021-22/GN/REG077 dtd. 22.07.2021
IT Updates

Relaxation in filing of forms 15CA & 15CB

The Central Board of Direct Taxes (CBDT) vide Press Release dtd. 20th July, 2021, has granted relaxation in filing of forms 15CA & 15CB in view of the difficulties faced by the taxpayers in filing the said forms on the new Income Tax portal.

Taxpayers are required to submit form 15CA, along with Certificate of a CA in form 15CB (wherever applicable) on the e-filing portal, before submitting a copy to the Authorized Dealer (AD) for any foreign remittance.

Relaxation: The taxpayers can submit the aforesaid forms in manual format to the AD till 15th August, 2021 (earlier it was extended up to 15th July, 2021). Further, it has also been clarified by CBDT that a facility will be provided on the new e-filing portal to upload these forms at a later date for the purpose of generating Document Identification Number.

Open Press Release