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Company stuck off, how to close bank account

Tarun (NA) (23 Points)

05 April 2023

Dear Experts,

I am looking for some advise on how to resolve an issue.

Scenario:

My mother and I started a small company in 2012 and it never really picked off any business. We keep the company sleeping for a long time and the govt of India got the company stuck off.

We have associated a bank account with the company, which we would like to close and if possible get the money in the account transferred to my mothers account.

Issue:

The bank is not willing to close the bank account as we are now ex-directors of the company without legal right to operate the account.

Question:

Is there a way to still get the money from the bank account to my mothers private account? If yes, would be glad to know the process.

Appreciate your kind assistance.

Thanks and Regards

Tarun Singhal

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2 Replies

CA Rakesh Ishi (Working at Private Company) (7890 Points)
Replied 06 April 2023

If the company has been struck off, it means that it no longer exists as a legal entity.

As ex-directors, you no longer have the legal right to operate the bank account associated with the company.

To transfer the money from the company's bank account to your mother's private account, you will need to follow these steps:

Obtain a letter from the bank stating that the account is inoperable due to the company being struck off and that you no longer have any legal right to operate the account.
Submit the letter along with a copy of the certificate of incorporation showing that the company has been struck off to the Registrar of Companies (ROC) to obtain a formal closure of the company.
Once the company has been formally closed, you can request the bank to transfer the funds from the company's bank account to your mother's private account.

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Tarun (NA) (23 Points)
Replied 13 April 2023

Thanks a lot Rakesh Ishi ji.

Will try to do that. Is there a online way to get the closure of company initiated with ROC? Does it require involvement of a CA or can it be done as ex directors as well?

Much appreciate your kind support.

Thanks and Regards

Tarun Singhal