News Alert: MCA relaxes residency norms for company directors
News from the desk of Ministry of Corporate Affairs (MCA)
Relaxation in minimum residency requirements of 182 days in India by at least one director in every company
On receipt of various representation from the stakeholders, Ministry of Corporate Affairs (‘MCA’) had vide General Circular No. 36/2020 dated 20th October, 2020, relaxed the residency norms of minimum stay of 182 days in India, by at least one director of every Company, for the financial year 2020-2021 and has clarified that non-compliance of residency norms of minimum stay of 182 days in India, by at least one director of every Company, shall not be treated as violation of Section 149 of the Companies Act, 2013 for the financial year 2020-2021.
Earlier, MCA had relaxed the aforesaid residency norms for the financial year 2019-2020 vide General Circular No. 11/2020 dated 24th March, 2020.
The Complete text of the Circular No. 36/2020 dated 20th day of October, 2020 can be viewed at below link:
http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.36_20102020.pdf Last updated: 22/10/2020 Article contributed by: Avi Sangal MBG Corporate ServicesTag: Companies Act 2013, MCA Circular, MCA Updates