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New Schemes For Defaulting Companies

The Company Law Settlement Scheme and Easy Exit Scheme have been introduced to make things easier for defaulting companies.
Hyderabad | 9th July 2010
The Registrar of Company Affairs, Ministry of Corporate Affairs, Govt Of India, has introduced 2 schemes - namely, Company Law Settlement Scheme 2010 and Easy Exit Scheme 2010 - for defaulting companies.

Registrar of Companies M V Chakranarayan told presspersons here on Thursday that the object of the Company Law Settlement Scheme is to provide opportunity to the defaulting companies to enable them to make their default good by filing belated documents and become a regular complaint company.

This scheme is applicable to those companies which have defaulted in filing their documents within the due date.

The companies are required to pay a statutory filing fee as prescribed, with an additional fee of 25% on the actual standardized additional fee.

This scheme will not be applicable to the companies against which action under subsection (5) of Section 560 of the Companies Act 1956 has been initiated.

The other scheme, the Easy Exit Scheme, provides an opportunity to defunct companies for getting their names struck off from the Registrar of Companies.

This scheme is applicable to those companies which have not been carrying over any business activity or operation on or before the 1st of April 2008, and which have not increased their minimum paid-up capital. This scheme is not applicable for some companies which fall under the category of listed companies, companies registered under section 25 of the companies Act 1956, and so on. There is no fee for availing the scheme, added Chakranarayan.

Both these schemes come into force from May 30, 2010, and shall remain in force up to August 31, 2010. For further details, the website www.mca.gov.in may be contacted.

Chakranarayan further stated that there are about 1.7 lakh companies in the country and about 38,00 in Andhra Pradesh which have not filed their returns for the last 3 years, whereas 1.92 lakh companies in the country and 23,955 in the state are defunct companies which have not filed their returns for 4 years and above.

Courtesy: INN News
filed in:  Industry & Business
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