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Home buyers as financial creditors MSME with a special dispensation –one major benefit- it does not disqualify the promoter to bid for his enterprise undergoing CIRP, if not willful defaulter. Withdrawal of CIRP permissible only with the approval of the Committee of Creditors with 90 percent of the voting share. Furthermore, such withdrawal will only be permissible before publication of notice of  EOI The voting threshold has been brought down to 66 percent from 75 percent for all major decisions Further, in order to facilitate the corporate debtor to continue as a going concern during the CIRP, the voting threshold for routine decisions has been reduced to 51%. The Resolution Applicant shall submit an affidavit certifying its eligibility to bid.  This places the primary onus on the resolution applicant to certify its eligibility. Minimum one-year grace period for the successful resolution applicant to fulfill various statutory obligations. Non -applicabilit

DIRECTORS KYC, NOW MANDATORY Key Highlights: 1. Existing Directors as on 31st March 2018 need to update KYC by 31st August 2018; 2. Directors obtained DIN (Directors Identification Number) after 31st March 2018 will file KYC Compliance Form on or before 30th April of next financial year. 3. Penalty is – Monetory – Rs.5000/- & De-activation of DIN 4. Director should file the Form using own Digital Signatures; 5. As per this provisions, now Foreign Nationals Directors are also required to have digital signature; 6. Documents Required         1. DSC of Director duly registered; 2. Self-attested PAN card; 3. Self-attested Aadhar Card; 4. Mobile Number; 5. Self-attested Electricity Bill/ Mobile Bill/ Bank statement of Director (latest 2 Months) of his/her present address;  5 . DIN declaration cum KYC. Detailed notification is attached herewith Companies (Appointment and Qualification of Directors) 4th Amendment Rules, 2018. http://www.mca.gov.inb/Ministry/pdf/CompaniesAppointment

MCA makes statutory auditor certificate must for firms raising public deposits The Ministry of Corporate Affairs (MCA) has now stipulated that companies raising public deposits should attach a Statutory Auditor’s Certificate in the circular or circulars in the form of advertisements inviting deposits. This move will come into effect from 15th August’ 2018.   The auditor certificate should certify that the company has not committed a default in repayment to deposits or in the payment of interest on such deposits, accepted either before or after the commencement of the new Company Law in 2013. Also, where a default had occurred, the auditor has to certify that the company had made good the default and a period of five years had lapsed since the date of bringing it to a close, the MCA said.   NBFCs excluded This requirement will not be applicable to any non-banking finance company or any banking company as these companies come under the regulatory oversight of the Reserve Bank o