Companies (Removal of Names of Companies from the Register of Companies)Amendment Rules, 2020



Quick Summary
The Ministry of Corporate Affairs has introduced amendments to the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, effective from 29th June 2020. These amendments introduce a new provision for government companies, including those where the Central or State Government holds the entire paid-up share capital, or their subsidiaries. For such entities, a specific indemnity bond (Form STK-3A) must be provided by an authorised representative from the administrative Ministry or Department. This new form and its insertion into the application process (Form STK 2) aim to streamline the removal of company names from the register under specific circumstances.

Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2020.

MINISTRY OF CORPORATE AFFAIRS (MCA)vide Gazette IDCG-DL-E-29062020-220254 and G.S.R. 420(E) dated 29th June, 2020 has issued and published the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2020f urther to amend the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016.

Key Highlights:

1. Applicability: with effect from date of publication in the Official Gazette i.e. 29.06.2020.

2. Following provisions added in Rule 4 (3) (i) in the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016

Rule 4 :Application for removal of name of company

Rule 4 (3) (i) :The application in Form STK 2 shall be accompanied by -

(i) indemnity bond duly notarised by every director in Form STK 3;

Company Name Removal Rules 2020: Key Amendments

Provisions Added:

Provided that in case of a :

(a) Government company in which the entire paid up share capital is held by the Central Government, or by any State Government or Governments or by the Central Government and one or more State Governments; or

(b) subsidiary of a Government company, referred to in clause (a), in which the entire paid up share capital is held by that Government company,

- a duly notarised indemnity bond in Form STK-3A shall be given by an authorised representative, not below the rank of Under Secretary or its equivalent, in the administrative Ministry or Department of the Government of India or the State Government, as the case may be, on behalf of the company‖.

3. Insertion in Serial No. 4 in Form STK 2, in the list of attachments

the words 'or by anauthorised representative of administrative Ministry/Department in Form No. STK - 3A' shall be inserted.

4. Form No. STK - 3A (Indemnity Bond) introduced.

 

Format of Form No. STK-3A

Form No. STK - 3A
Indemnity Bond

(To be drawn on Stamp Paper of appropriate value) (To be given by the Authorised Representative of the administrative Ministry/Department)

[Pursuant to the proviso to clause (i) of sub-rule (3) of rule 4 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016]

 

To,

The Registrar of Companies

I, the authorised representative* of the ................................................ (name of the administrative Ministry/Department) for the ...................................... (mention name of the Government company), incorporated on................................under the Companies Act, 2013 or Companies Act, 1956 having its registered office at................................, do hereby declare that the Government of India/State (name of the State to be mentioned in case the administrative Ministry/Department belongs to a State) hereby undertakes to indemnify : -

(i) the claimants for all lawful claims against the company arising in future after the striking off the name of the company;

(ii) any person for any losses that may arise pursuant to striking off the name of the company;

(iii) the claimants for all lawful claims and liabilities, which have not come to notice up to this stage, and if any claim arises or observed even after the name of the company has been struck off in terms of section 248 of the Companies Act, 2013.

Date
Place
Signature:
Official Seal:

Name, Father’s name, Address and Designation:

* Authorisation received from the administrative Ministry/Department to furnish this Indemnity Bond shall be attached with this Form.

Link: http://egazette.nic.in/WriteReadData/2020/220254.pdf

Disclaimer:  IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.  THIS HAS BEEN SHARED FOR KNOWLEDGE PURPOSES ONLY.

FAQ :

The amendment rules came into effect from the date of their publication in the Official Gazette, which was 29th June 2020.

The amendment introduces a new provision for government companies and their subsidiaries, requiring a specific indemnity bond (Form STK-3A) to be submitted by an authorised representative of the administrative Ministry or Department.

An authorised representative, not below the rank of Under Secretary or equivalent, from the administrative Ministry or Department of the Central or State Government, on behalf of the government company or its subsidiary.

Form STK-3A is a new Indemnity Bond introduced by the amendment rules, to be given by the authorised representative of an administrative Ministry/Department for government companies.

The new provision is added to Rule 4(3)(i) of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, and the words 'or by an authorised representative of administrative Ministry/Department in Form No. STK - 3A' are inserted in Serial No. 4 of Form STK 2.




About the Author

Company Secretary

Company Secretary having 8+ years of post qualification experience in the Compliance Management Services industry by serving Corporates including Listed Companies, Corporate Secretarial Firms and LLP. Have a keen interest in the Corporate Governance and Compliance Management and the soaring craving to learn everyday. A ... Read more

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