Ways of Striking Of Name of Company from Register of Companies

Strike-off of company from registrar of companies is an opportunity given to defunct companies or those companies voluntarily shut down their business can file their application with roc under section 248. This is one of the best and easiest ways where companies can strike off its name without any hassle by properly arranging all the required documents as per the law. The ways of strike off the name of companies are

• By Registrar of Companies on suo-motto
• By Application of Company for removal of name/ Strike off of Company

A company which is undergoing the process of ‘Striking Off’ either voluntarily or by action of the Registrar is given the status as ‘Striking Off’ and the status of the company is changed to Dissolved or Liquidated when affairs of the company are completely wound up by following the provision of winding up of Company. After dissolution or liquidation, the company ceases to exist.

Instances Amounts to Strike off The Name of the Company by the Registrar

1. In case of an existing company which has failed to commence its business within one year of its incorporation OR
2. It is not carrying on any business or operation for a period of two immediately preceding financial years.
3. It has not made any application within such period for obtaining the status of a dormant company under section 455 of the Companies Act 2013.

Due to above reasons the Registrar can suo motu after giving notice to the company after giving an opportunity of being heard, strike off the name of the company from the register of companies after publication of same in the Official Gazette. On the publication in the Official Gazette of this notice, the company shall stand dissolved.

Instances of Strike off The Name of the Company By Way Of Application by the Company (Voluntarily)

Striking off under Chapter XVIII of the Companies Act 2013 can also be by way of an application filed by company to Registrar for removing its name from the register of companies. On receipt of the application along with necessary fees, the Registrar issues a Public notice for intimating the general public about the receipt of an application for removal of name of the company, giving a chance to the creditors and general public to submit their objection, if any, to the proposed application. In case no objection is received, the Registrar may proceed to strike off the name of the Company. On the publication in the Official Gazette of this notice, the name of the company stands struck off with effect from the date mentioned therein.

The liability of every director, manager or other officer who was exercising any power of management, and of every member of the company dissolved ,may be enforced as if the company had not been dissolved.

List of The Companies Which Cannot be Removed Under The Above Provisions

1. Listed Companies
2. Companies registered under section 8
3. Companies having charges which are pending for satisfaction
4. Companies whose application for Compounding is pending
5. Companies against which any prosecution for an offence is pending in any court
6. Vanishing Companies
7. Companies that have been delisted due to non-compliance of listing regulations or listing agreement or any other statutory laws;
8. Companies where inspection or investigation is ordered and being carried out or actions or such order are yet to be taken up or were complete but prosecutions arising out of such inspection or investigation are pending in the
9. Companies which have accepted public deposits which are either outstanding or the company is in default in repayment of the same;
10. Companies where notices under section 234 of CA 1956 or 206 or 207 of the Act, 2016 have been issued by the Registrar or Inspector and reply thereto is pending or report under section 208 is pending or where any prosecution arising out of such inquiry or scrutiny, if any, is pending with the court.

DISCLAIMER: THE ARTICLE IS BASED ON THE RELEVANT PROVISIONS AND AS PER THE INFORMATION EXISTING AT THE TIME OF THE PREPARATION.IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT AND INDIRECT RESULT FROM THIS ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING INITIATIVE.

THE AUTHOR CAN BE REACHED AT VINAYAK.CHARU@GMAIL.COM and at 6283643738