Ministry of Corporate Affairs (MCA) issued a Notification dated 26th December, 2016 notifying Section 248, 249, 250, 251 and 252 of Companies Act, 2013, deals with Removal of Names of Companies from Register of Companies (ROC).
With the advent of new Companies Act, 2013, Corporate Governance has become the essence of all Business Houses. Under the Companies Act, 2013, removal of name under Sections 248-252 is a privilege given to the Corporate to close their dormant entities legally without any hassles. We all are aware of the situation of Dormant Companies to whom the Registrar of Companies has issued notice in form STK-1 and ask them to reply within 30 days from the date of receiving notice from the ROCs unless contrary provide the companies name will be struck off from the Registrar maintained at MCA portal official site.
In relation with the removal of name of the companies, following questionnaire is given for kind references.
1. An application under sub-section (2) of section 248 on behalf of a company shall not be made if, at any time in the previous three months, the company—
♠ has changed its name or shifted its registered office from one State to another;
♠ has made a disposal for value of property or rights held by it, immediately before cesser of trade or otherwise carrying on of business, for the purpose of disposal for gain in the normal course of trading or otherwise carrying on of business;
♠ has engaged in any other activity except the one which is necessary or expedient for the purpose of making an application under that section, or deciding whether to do so or concluding the affairs of the company, or complying with any statutory requirement;
♠ has made an application to the Tribunal for the sanctioning of a compromise or arrangement and the matter has not been finally concluded; or
♠ is being wound up under Chapter XX of this Act or under the Insolvency and Bankruptcy Code, 2016.”.
2. Additionally, any Company falling under the below categories cannot apply for removal of the name on suo – moto basis:-
♠ Listed companies;
♠ Companies that have been delisted due to non-compliance of listing regulations or listing agreement or any other statutory laws;
♠ Vanishing companies
♠ Companies where inspection or investigation is ordered and being carried out or actions on such order are yet to be taken up or were completed but prosecutions arising out of such inspection or investigation are pending in the Court;
♠ Companies where notices under section 234 of the Companies Act, 1956 (1 of 1956) or section 206 or section 207 of the Act have been issued by the Registrar or Inspector and reply thereto is pending or report under section 208 has not yet been submitted or follow up of instructions on report under section 208 is pending or where any prosecution arising out of such inquiry or scrutiny, if any, is pending with the Court;
♠ Companies against which any prosecution for an offence is pending in any court;
♠Companies whose application for compounding is pending before the competent authority for compounding the offences committed by the company or any of its officers in default;
♠ Companies, which have accepted public deposits which are either outstanding or the company is in default in repayment of the same;
♠ Companies having charges which are pending for satisfaction; and
♠ Companies registered under section 8 of the Companies Act, 2013 or section 25 of the Companies Act, 1956.
The author can also be reached at [email protected]