Easy Exit Scheme 2011

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This query is : Resolved

CA Pintu Mishra (Querist)

13 January 2011 As per Easy Exit Scheme 2011, it is applicable for the defunct companies which has nil assets and nil liability and does not has any operative income after 1.4.2008.
In case company having positive reserves which had no business after 1.4.2008 repays its liabilities and after that some amounts remains as cash in hand.
Can the company go for this scheme?
If it can then what should it do with available cash balance?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

13 January 2011 EES is not applicable on following company:

(a) listed companies;
(b) companies that have been de-listed,
(c) companies registered under section 25 of the Companies Act, 1956;
(d) vanishing companies;
(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.