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 Easy Exit Scheme, 2011

 

Dear Friends,

 

Refer my article on 02.08.2010, titled Company Law Settlement Scheme, 2010, Easy Excit Scheme,2010 (/articles/company-law-settlement-scheme-easy-exit-scheme-2010--6421.asp ), wherein find following few lines:

 

Due to various economic reasons, may be valid from the situations undergoing by the concerned default companies or  defunct companies, there might be lapses in observing the rules and provisions of the Companies Act, 1956.   Let us not think that there was no effort from these companies to get regularized and be compliant.

 

It is unfortunate that the Ground reality is very harsh to digest how rigmarole are our procedures in the case of  the default companies to become  compliant by filing of documents on the due date(s) specified under the Companies Act, 1956 and rules made there under and even to exit from the Registrar of  the ROC.

   

 

Helpless are our professionals in voicing the same on concerned forums, in turn causing irreparable loss to our economic wealth.

 

Let the Ministry ignore the time limit, proposed for these Both schemes that the same will be in operation from 30 May 2010 to 31 August 2010 and put the sincere efforts at every ROC.”

 

I requested to ignore the time limit and encourage all the subject entities to take part in the process.

 

 

On 03.12.2010, Government of  India, Ministry of Corporate Affiars, issued a General Circular No.6/2010. It says:

 

“In order to give an opportunity  to the defunct companies, for getting  their  names strike off from the Register of  Companies, the Ministry had  launched a Scheme namely, “Easy Exit Scheme, 2010” under Section 560 of  the Companies Act, 1956 during May-Aug, 2010. A large number of  companies availed this scheme. However, on huge demands from corporate  sector, the Ministry has decided to  re-launch the Scheme as, “Easy Exit

Scheme, 2011” under Section 560 of the Companies Act, 1956.

 

The Scheme shall come into force on the 1st January, 2011 and shall remain in force up to 31st January, 2011.”  

 

It is good to see the re-launch the scheme.  

 

We need to re-look at the following points:

“(iv) Scheme not applicable to certain companies: - The Scheme does not cover the following companies namely:-

 

(e) companies where inspection or investigation is ordered and being carried out or yet to be taken up or where completed prosecutions arising out of such  inspection or investigation  are pending in the court;

(f) companies where order under section 234 of the  Companies Act,1956  has been issued by the Registrar and reply thereto is pending or where  prosecution if any, is pending in the court;

(g) companies against which prosecution for a non-compoundable offence is pending in court;

(h) companies accepted public deposits which are either outstanding or the company is in default in repayment of the same;

(i) company having  secured loan ;

(j) company having  management dispute;

(k) company in respect of which filing of documents have been stayed by court or Company  Law Board (CLB) or Central Government or any other competent authority; 

(l) company having dues towards income tax or sales tax or central excise or banks and financial institutions or any other Central Government or State Government Departments or authorities or any local authorities.”

 

If  the MCA be a bit more proactive, a review about above points, would be effective enough.

 

From

VENKATESWARA RAO SAPARE, Hyderabad-500 008 A.P 18.12.2010.




Category Corporate Law, Other Articles by - Venkateswara Rao Sapare 



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