Critical Updates & Way Forward for 2019-2020
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This document provides a summary of critical corporate law updates for the years 2019-2020 and a way forward. It discusses objectives of lawmakers regarding transparency and accountability. It outlines key updates from April 2018 to March 2019 including the significant beneficial owner rule, directors' KYC, and defaulting company provisions. The document notes an increase in annual disclosure requirements over time, which can benefit compliance and reduce fraud. It highlights several compliance agencies and ends with a compliance calendar and checklist of key items to address before March 2019 such as trade advances, related party transactions, and corporate social responsibility requirements.
Critical Updates & Way Forward for 2019-2020
- 1. Critical Updates & Way Forward for 2019-2020 IYSHWARYA. R Senior Associate, SAS Partners Corporate Advisors 1
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- 4. Transparency & Accountability Class Action Suits Significant Beneficial Owner Key Managerial Personnel Resident Director Corporate Governance Secretarial Audit Rotation of Auditors Economic Aspects Corporate Social Responsibility Insolvency & Bankruptcy Code 4
- 5. CRITICAL UPDATES- F.Y. 18-19 A WALK THROUGH 5
- 6. EMF-RBIJUNE SBOJUNE Companies Amendment Ordinance NOV Directors KYCJULY 6 Updatesfrom April18toMar19
- 9. 0 1 2 3 4 5 6 7 8 2013 2015 2017 2019 Annual Disclosure Requirements 9
- 11. MCA CBDT - IT DGFT - EXIM CBEC - GST SEBI RBI 11
- 12. WAY FORWARD 12
- 14. Trade Advances Approaching closure of 1 Year Ensure the refund of the said amount received or render the service agreed before the expiry of the 1 year period. On failure of above, consider the amount as Loan/Deposit. Make necessary filings 14
- 15. Loan from Directors / their Relatives If taken Ensure that a declaration is received that the money lent to the Company is not from borrowed funds. If the money is from borrowed funds, categorize as deposits and comply. 15
- 16. Consolidation of Financials If Investments have been made above 20% in a Company in a Year Check on the requirement of consolidation of accounts with the another Company. Initiate application for extension of Annual General Meeting if any delay expected in Audit. 16
- 17. Related Party Transactions If transactions with Related Parties Ensure that related parties are identified and requisite approvals are taken. Wherever approvals are not taken, ensure that the transactions are ratified and recorded. 17
- 18. Corporate Social Responsibility If applicable Ensure that the CSR allocated amount is spent before the end of the relevant financial year. If the CSR amount is not spent, the reasons for non spending has to be justified by the Board in their report. 18
- 19. Loans to Directors & Related Parties If provided loans to Directors & Related Parties Have a tap on the credit limit to ensure it is within the allowed margins. Ensure that necessary approvals are received from the requisite authority. 19
- 20. Q1 APRIL MAY JUNE Q2 JULY AUG SEPT Q3 OCT NOV DEC Q4 JAN FEB MAR KYC DPT-3 MSME 1 SBO ACTIVE ADT 1 Financial Statements Annual Return COMPLIANCE CALENDAR 2019-2020 20