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Govt gives more time to companies for reporting fresh liabilities

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NEW DELHI : The ministry of corporate affairs on Wednesday rolled out a scheme to give companies more time to report creation of any lien on their assets under the Companies Act.The scheme which condones companies’ delay in reporting creation of charges on their physical or intangible assets in India or abroad is in response to requests from the industry for additional time for compliance.Companies Act mandates that businesses have to report creation of a charge on their assets within 30 days or with additional fees, within 300 days.

If they default on this, the investor that creates a lien on the assets of the company in its favour, can report it after giving a two-week notice to the company and recover the costs of reporting.The ‘Scheme.

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