MCA Update: Relaxation for Minimum Residency Period-FY 2020-21 u/s 149 of Companies Act, 2013
Ministry of Corporate Affairs #MCAA) vide its General Circular No. 36/2020 dated 20th October, 2020 has clarified that non-compliance of minimum #residency in India for a period of at least 182 days in a year, by atleast one Director in every Company under Section 149 of #CompaniesAct, 2013 shall not be treated as non-compliance for the Financial Year 2020-21 also.
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Conclusion: Amidst the COVID-19 outbreak and imposition of strict travel restrictions, the compliance for the minimum staying period of 182 days was difficult to maintain, therefore, this is a much awaited and welcoming update by MCA.