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Easy Exit scheme -2011- some confusions

Amritorupa Kanjilal (Manager-Secretarial) (90 Points)

05 January 2011

1. If a company has filed its annual returns throughout its life (ie last 3 years also) but has not done any business (inoperative since incorporation) is it eligible under EES-2011?

2. If a company was incorporated after April 1 , 2008, is it eligible under EES-11?

If anyone has any experience or knowledge in this regard pls help. The circular does not clarify these doubts.

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6 Replies

HARDIK (COMPANY SECRETARY NCFM (Corporate Governance )) (664 Points)
Replied 05 January 2011

yes your company can apply for exit scheme 2011.

1 Like

CA.Yeshwant Mehta (President) (147 Points)
Replied 10 January 2011

Even if the company incorporated after 1.4.2008 and has not done any business activity can apply under this scheme.

Need help, write us: ca.ysmehta @ icai.org

Paras Mittal (Chartered accountant) (28 Points)
Replied 24 January 2011

Hi, what if the company alloted shares due to standing share application after 01.04.2008, will it be treated as doing business?

Thanks

CA.Yeshwant Mehta (President) (147 Points)
Replied 24 January 2011

No. Business activity means activity related to main object clause of MOA. Allotment of shares against standing application is not business activity.

1 Like

K.Gangadhararao (Audit Assistent) (34 Points)
Replied 25 January 2011

sir,

i prepare a EES 2011 form and up load the file in mca site, then the prescrutiny window showing the uploading file is incorporated on or after 1.4.2008.

what can i do, the last date is 31.1.2011,

please do the need ful

cs ashwini kumar (Company Secretary in Practice) (173 Points)
Replied 25 January 2011

Dear Mr. Gangadhararao,

the EES 2011 is not applicable to a company incorporated on or after 01.04.2008. As per the Scheme only defunct company may apply for the exit scheme 2011 (The Scheme)and the Scheme defined the "Defunct Company" as under:

"defunct company" means a company registered under the Companies Act, 1956 which is not carrying over any business activity or operation on or after the 1st April, 2008 and includes a company which has not raised its paid up capital as provided in sub sections (3) and (4) of Section 3 of the Comapanies Act, 1956.

It means the company must be incorporated before 1st April 2008 only then it may comply the conditions of not carrying over any business activity or operation on or after the 1st April 2008.

Best Regards

CS ashwini kumar

csashwini1970 @ gmail.com