MCA Advisory: Preventive Measures to Contain Spread of COVID-19

As we all are aware, the Novel Coronavirus or COVD-19 is affecting more than 110 countries, including India. Due to the magnitude and the extent of its spread, the World Health Organization has already declared it a Pandemic. It is not limited to human suffering, it is also causing major economic disturbances. To handle this public health situation, the corporate sector would be required to play a key role in executing the strategic policy decision of social distancing, this step is very important for reducing the rate and extent of the disease transmission at the community level.

By taking the gravity of the public health situation seriously, the Government in the Ministry of Corporate Affairs has loosened the rules with respect to meetings of Board and dispensed with the necessity of holding physical meetings on matters relating to approval of financial statements, restructuring, board report, etc. up to 30th June 2020. We are also investigating any other possible relaxations under the Companies Act, 2013, that may be necessitated on account of CoronaVirus outbreak.

Considering the fact that Companies or Limited Liability Partnerships are major employers, especially in urban areas, their full participation and cooperation are most essential to fully realize the purpose of social distancing as a means to contain the spread, morbidity, and mortality due to the disease. As part of disaster management to meet this urgent and severe health exigency, all companies/LLPs are expected and strongly advised to put in place an immediate plan to execute the “Work from home” policy as a temporary measure till March 31st, 2020, after which the situation will be estimated by the proper authorities as per the evolving situation. 

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All companies or LLPs are advised to implement the “Work from home” policy in their offices and headquarters and field offices to the maximum extent possible, including opting in for meetings through video conference or other electronic/ telephonic/ computerized means.

Further, even with the necessary staff on duty, staggered timings may be followed to minimize physical contact/ interaction. Additionally, the other preventive measures, including ‘Dos & Don’ts advised by public health authorities need to be strictly followed.

In order to create greater awareness and confidence in our state of readiness, the Ministry of Corporate Affairs is in the process of developing and deploying a simple web form for companies/ LLPs to confirm their readiness to deal with the CoronaVirus or COVID-19 threat. The webform named CAR which stands for Company Affirmation of Readiness towards COVID-19 needs to be filed by an authorized signatory of Companies & LLPs. CAR-2020 will be deployed on the 23rd of March, 2020. All the Companies and LLPs are requested to reach/ report compliance using the above-mentioned web service on the 23rd instant. I sincerely hope that you will take all the possible precautionary measures at your side to stand strong in this public health situation and contribute to containing the disease and minimizing its contagious effect.

With regards,

Yours sincerely,

(Injeti Srinivas) Secretary, Ministry of Corporate Affairs