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COVID-19: MCA extends minimum residence criteria relaxations for Directors for FY 2020-21 [Read Circular]

MCA - minimum residence criteria relaxations - residence - directors - MCA Circular - Taxscan

The Ministry of Corporate Affairs (MCA) issued special measures under the Companies Act, 2013, and Limited Liability Partnership Act, 2008 in view of the COVID- 19 outbreak.

The government extended minimum residence criteria relaxations for directors for Financial Year 2020-21 amid COVID-19 pandemic.

The government had, in Circular No. 11/2020, dated 24th March, 2020, amongst other relaxations or special measures provided in view of the COVID-19 pandemic, indicated regarding providing immunity to the Companies and LLPs with respect to delayed filing of forms.

The board kept in view the requests received from various stakeholders seeking relaxation from the residency requirement of 182 days in a year and after due examination.

The government clarified that non-compliance of minimum residency in India for a period of at least 182 days in a year, by at least one director in every company, under section 149 of the Companies Act, 2013 shall not be treated as non-compliance for the financial year 2020-2021 also.

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