Covid 19: Is It An Opportunity?

Adv Sherry Samuel Oommen is a practising lawyer at High Court of Kerala who specialises in tax and Corporate Laws. Presently he heads the tax and corporate law practice of Nash Capital Partners. Apart from being a qualified lawyer, he is also a chartered accountant, cost accountant and a company secretary. He is currently pursuing his Doctorate Degree and is reachable at [e-mail].

- Adv Sherry Samuel Oommen

The tellers of doom would ar-gue that India Inc is staring at the end of a barrel owing to the contagion. In my view, we are at a cusp, where all the fittest would survive. To me, in every adversity, there is an opportunity and likewise in every challenge, there is a winner. If one is indeed patient, and able to think with a cool and calm mind, defenestrating notions to the contrary, tiding over the difficult times, and making the best of every opportunity that presents itself along with the way would become a way of life. In this article, I intend to delve into some of the key relaxations granted which could be considered.

Relaxations by the Ministry of Corporate Affairs

In view of the recent pandemic and with a view to ensure compliance, the Ministry of Corporate Affairs (“MCA”) has introduced a slew of measures. Some of the key relaxations granted by the MCA are as follows

1. The Ministry of Corporate Affairs vide Circular 12/2020 has introduced the Companies Fresh Start Scheme,2020. The said scheme offers a one-time opportunity for defaulting companies to enable them to complete their pending compliances from its incorporation. Importantly, the Scheme offers a waiver of additional fees, apart from immunity from prosecution/penal proceedings. The Government has also offered similar benefits to Limited Liability Partnerships vide Circular No 13/2020 dated 24.03.2020, which is indeed appreciated.