Covid-19 Second Wave: CSR Scope Widened, Timelines Relaxed For India Inc.
Offering relief to India Inc. in the wake of the second wave of Covid-19, the Ministry of Corporate Affairs has expanded the scope of CSR activities, and relaxed the time limits to hold board meetings and file charge-related documents.
Here’s what the ministry notified this week:
Scope Of CSR Activities Widened
The ministry expanded the list of activities on which companies can spend corporate social responsibility or CSR funds. The list will now also include:
Creating health infrastructure for Covid-19 care.
Establishment of medical oxygen generation and storage plants.
Manufacturing and supply of oxygen concentrators, ventilators, cylinders and other medical equipment for countering Covid-19.
Companies can spend the CSR funds either on their own or in collaboration.
Relief On Gap Between Board Meetings
According to the company law, the gap between two board meetings in a financial year shouldn’t be more than 120 days. This requirement has now been relaxed by 60 days for the next two quarters.
The ministry notified that the gap may extend to 180 days during April-June and July-September 2021.
More Time To File Charge-Related Forms
Any charge created by a company on its property, assets or undertaking has to be registered with the Registrar of Companies within 30 days of its creation or modification.
The period between April 1 and May 31, 2021 will now be excluded while calculating the 30-day period.
This relaxation is applicable when:
The charge has been created or modified before April 1 and the period of 30 days has not expired as on this date.
Or where the date of creation or modification falls between April 1 and May 31.
The ministry also relaxed the fee applicable in such cases.
The relief will not apply to cases where the forms have already been filed, or where the period of 30 days expired before April 1 or where the timeline for filing the form expires at a future date, despite exclusion of the relaxed timelines, the ministry has clarified.