Company Law Settlement Scheme, 2010
The Ministry, in exercise of the powers under Section 611(2) and 637B (b) of the Companies Act, 1956 has introduced the “Company Law Settlement Scheme, 2010,” vide its General Circular No. 1 /2010 dated May 26, 2010.
The scheme offers the following highlights:-
THE INTENT
- To get the statutory filings done by the Company, which have not been done within the prescribed period
- To encourage the companies to increase their authorized capital to the minimum capital required as per Section 3 of the Companies Act 1956.
THE BENEFITS
To Companies
- Any delayed filing of document by Company can be done at cost reduced by 75% on the additional fee payment i.e.
Fee in case of e filing of document = Normal filing fee + 25% of Additional filing fee
- Condoning the delay in filing documents with the Registrar
- Granting immunity from prosecution
To Stakeholders
The requisite documents would be available for inspection at public portal on timely basis
PERIOD OF SCHEME
The scheme opens on 30-05-2010 and closes on 31-08-2010.
Easy Exit Scheme, 2010
With a view of provide an easy exit to the Companies which are desirous of getting the name struck off from the records of the ROC or are defunct companies i.e. such companies which are inoperative since incorporation or have commenced business but are inoperative later on and not filing their due documents timely with the Registrar of Companies, the Ministry has come out with an Easy Exit Scheme, 2010 vide its General Circular No. 2 /2010 dated May 26, 2010.
The scheme offers the following highlights:
- Applicable on Defunct Companies which have active status or Defunct Government companies which can submit ‘No Objection Certificate’ from relevant Ministry
- Not applicable on companies specified in the circular attached
- Procedure to be followed for granting ‘Exit’ to the Company
- The scheme opens on 30-05-2010 and closes on 31-08-2010.
The Hidden treasures of the Schemes
For Operational Companies
- The delayed forms are not time barred i.e. even the oldest or the most recent document which has missed its due date would avail the benefit of reduced filing fee.
- Companies can avail immunity against any prosecution (whether or not appeal has been filed) pending against itself with reference to delayed or non filing of statutory forms or returns.
- The benefit of the scheme extended to all the forms irrespective of the nature of additional fee charged on the same for e.g. delayed filing Form 5 falls under the preview of the scheme.
For Non-Operational Companies
- Both the aforesaid schemes read together offers an opportunity to those non-operational companies which intends to come out of the structure of corporate entity. After filing of the pending documents at a reduced cost, the Companies can file for Easy Exit under this scheme and can avail dual benefit of reduced cost as well as reduced time lines in one go.
The Scheme is fantastic but many of the companies can nto take the advantage of the scheme due to lack of information,
Is there any possibility to extend the date of CLSS Scheme
Is there any extension to CLSS issued by CLB?
scheme is again effective since 1.1.2011
A lot of companies are received the offer of ESS and CLSS in the last week of august 2010.They are not in a position to use the scheme due to lack of sufficient time.Moreover the site was also very slow during the last days.So an extention is needed.Whether any possibility for the extentions?.
Has teh Easy Exit Scheme been Extended?
is there any extension of time
beyond 31-8-10
to ESS scheme
regards
Dear Team,
As the Easy exit Scheme 2010, prescribe that “Statement of Account” to be certifed by the practising the Chartered accountant. Need to know what check should such CA perform before certifying such statement of account.
Rgds
Iqbal Singh
It is a good decision for both as well as companies and government. We shouls take the benefit of this scheme.