March 19, 2021
Summary of the notifications and circular issued by MCA and IBBI on 18/03/2021
MCA notifies the commencement of provision related to remuneration of non-executive directors in case of inadequate/nil profits.
MCA has notified the provision that non-executive director, including an independent director, can be remunerated by the Company in case of inadequate/nil profit, subject to the ceiling prescribed under Schedule V of the Companies Act, 2013 and its Rules.
MCA prescribes limits for yearly remuneration payable to non-executive directors in case of inadequate/nil profits
Through this notification, MCA has amended Schedule V of the Companies Act, 2013 and prescribed the ceiling for yearly remuneration payable to non-executive directors including Independent Directors in case of inadequate/nil profits, based on the effective capital of the Company.
The Central Government establishes Central Scrutiny Centre (CSC) to scrutinize Straight Through Processes (STP) e-forms filed by the Companies with effect from 23/03/2021.
Through this notification, MCA notifies the establishment of CSC, which shall function under the administrative control of the e-governance Cell of MCA, to scrutinize the STP e-forms filed under the Companies Act, 2013 and its Rules and forward its findings to the concerned jurisdictional Registrar of Companies for further necessary action under the said Act and its Rules.
IBBI notifies the format for reporting of status of ongoing corporate insolvency resolution processes (CIRPs) through Form CIRP 7
Regulation 40B of CIRP regulations require filing of Form CIRP 7 within three days of due date of completion of any activity stated in the said regulation, and continue to file Form CIRP 7 every 30 days, until the said activity remains incomplete. The Form CIRP 7, whose format is prescribed in the said circular, shall be available for filing three days prior to the due date. This circular is applicable for all the processes ongoing as on the date of this circular.
These notifications and circular are available on our free to use website www.ca2013.com for your quick reference.