Corporate Governance Current Affairs
The Union Ministry of Corporate Affairs (MCA) has launched National CSR Data Portal & Corporate Data Portal for bringing accountability and transparency for corporate India.
The portals aim to provide easy accessibility to general public and also ensure high level of compliance. It will also help in institutionalising and consolidating the CSR activities.
National CSR Data Portal
The portal will capture information on Corporate Social Responsibility (CSR) activities carried out by eligible companies, filed on MCA21 registry in their financial statements. It will contain all filed information that can help to generate pre-defined reports with respect to expenditure across states, districts and development sectors.
It will also provide feedback on projects to be given by registered users. Moreover, the open access to data will help researchers and also improve quality of data filed by companies, as well as involve intended beneficiaries in giving valuable feedback to companies.
Corporate Data Portal
The portal aims at making all financial and non-financial information of companies available in user-friendly format to general public. It will also have facility to generate pre-defined reports and also customised reports. The portal will enable greater transparency and creation of tools for stronger Corporate Governance.
These portals are expected to bring 100% transparency in corporate governance by making public over 4-crore filings of nearly 1.2 million companies. They will also promote corporate transparency and accountability to public at large. They are also expected to become platforms for learning and sharing of ideas and information. They will also facilitate social audit of CSR projects and bring together CSR contributors, implementers and beneficiaries and align CSR activities with national development goals.
The Union Ministry of Corporate Affairs (MCA) is going to roll out Condonation of Delay Scheme to provide a three-month window for defaulting companies and their director to submit their annual filings.
It will be operational from January 1 to March 31, 2018. It is expected to come as a relief for disqualified directors and only bona fide directors will benefit from the proposed scheme.
The MCA had struck off more than 2 lakh companies and disqualified 3 lakh directors of such companies that had failed to file financial statements or annual returns for continuous period of three financial years from 2013-16 as part of ongoing exercise of cleaning up Corporate sector and crackdown on shell companies and on illicit fund flows.
Aggrieved by disqualification many disqualified Directors had made representations to MCA and also had approached National Company Law Tribunal (NCLT) and High Courts for staying order of disqualification. The Condonation of Delay Scheme has been introduced provide a final opportunity for defaulting companies and bonafide Directors to regularise compliance within three-month window.
Condonation of Delay Scheme
The scheme will be operational for period of three months only. During this period, DIN (Director Identification Number) of disqualified directors will be re-activated temporarily to facilitate Directors of defaulting companies to file all overdue annual returns. If Director of defaulting company fails to utilise scheme and regularise compliance after the end of the three month window period, his DIN will be deactivate and he will be disqualified for period of 5 years.
All registered companies in India are required to file annual return with MCA each year. Under the Companies Act, 2013, Directors of Companies which have defaulted in filing annual return continuously for period of 3 years are liable for disqualification. On disqualification, Director of such companies will be unable to incorporate new company or act as Director of an existing company for a period of three years.