CS Shubham Kapoor

BACKGROUND The micro and small businesses in India are characterised by heterogeneity and fragmentation, and several them are informal. Much before the term, Micro, Small and Medium Enterprises (MSME) caught on and within the broad contours of the ‘export substitution’ policy paradigm, India had defined Small Scale Industry (SSI) in order to target resources towards this segment of industries, rightly considering it to be the engine of growth. An SSI in the 1950s was defined as an industry with investment of up to Rs. 5 lakh in fixed assets and employment of 50/100 people with or without power. By the 1960s, the employment criteria was dropped and the investment ceiling thereafter was constantly increased. The MSMED Act in 2006 used ‘micro and small’ instead of ‘small scale industries’ and added a definition of ‘medium’. Further, the definitions are based on the investment criteria and differentiated on the basis of manufacturing and services. DEFINITIONS MSME Definition Earlier 

BACKGROUND In view of the COVID-19 outbreak, the Ministry of Corporate Affairs (‘MCA’) had come up with the circular dated April 08, 2020 ,  providing certain relaxations from the provisions of Companies Act, 2013 and rules made thereunder including conducting the extra-ordinary general meeting for transecting the business of urgent nature through video conferencing (‘VC’) and other audio visual means (‘OAVM’) till June 30, 2020. Further, in order to provide more clarity on the modalities to be followed by the companies for conducting EGM viz. manner of issuance of notice, voting by show of hands and postal ballot etc., another circular dated April 13, 2020  (Collectively referred to as ‘EGM Circulars’) was brought in force. In continuation to the aforesaid circulars and in view of the social distancing norms and other restrictions thereof, MCA provided an extension of 3 months for holding annual general meeting (‘AGM’) for the companies having the calendar year as the financial year v