Directors are the eyes and brain of a company. To carry out all the necessary functions and do all the effective decision making, a person is required and expected to possess expertise in the field to which the company belongs. But apart from this, many requirements are needed to be complied with according to the laws prevailing in our country.

This article covers an overview of almost all the provisions, compliances and regulations that a company or a director must comply with and follow while dealing in matters related to a directorship in a company with a number of landmark judgements for more understanding.
 

In this present scenario of countries being connected globally, corporates are also getting globalised increasingly. When corporates start working on a global scale, they get connected with people across countries. Nowadays, it is quite normal for companies to have their directors and stakeholders residing in far-flung areas. It is not easy and convenient for them to travel all the way to attend the meetings as it takes time and is also a costly affair.

With the need of making every possible thing electronically available, a requirement of providing an option to companies to conduct their meetings through virtual mode was also felt. Virtual meetings allow people to meet and exchange information in real-time without being physically present together.

Considering all these things in mind, the Companies Act, 2013 allow companies to hold board and general meetings through e-mode with some restrictions.
 

Amid this COVID pandemic and lockdown situation, many requests were received by the MINISTRY OF CORPORATE AFFAIRS. Given the difficulties faced by its stakeholders, the MCA provided certain temporary relaxations to decrease the burden of mandatory compliances by the companies and LLPs in this hour of crisis.

In view of the widespread COVID-19 second wave, an increasing number of cases and the sudden lockdowns, certain relaxations from compliances under Companies Act, 2013 have been provided by MCA vide General Circular dated May 03, 2021.
 

Company Auditor’s Report Order (CARO) 2020 is the new format for issue of audit report, in case of statutory audits of companies under the Companies Act, 2013 which includes the additional reporting requirements after the consultations with the National Financial Reporting Authority (NFRA).