LIVE GST Audit Course by CA Sachin Jain. Register Now!!

Section 560 - striking off name from RoC

vasudevan (.) (376 Points)

09 February 2010

I have a query regarding s.560. A private company, incorporated one year back, has not opened its bank accounts (and no operations, nothing). They want to proceed for winding up now (At the earliest possible). If they opt s.560, they need to appoint auditor to prepare annual accounts etc, but they dont have bank account yet. Can you please suggest some way?

Reply
Follow
Share

8 Replies

CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 09 February 2010

please see the procedure here..

/forum/details.asp?mod_id=62092

vasudevan (.) (376 Points)
Replied 10 February 2010

Thanks Adarsh...But, in our case, since the company has not opened the bank account, they cannot appoint the auditors, hence they cannot have any audited financials (which is essential to be produced in s.560 case).

Any idea what to do now?

CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 18 February 2010

Originally posted by : vasudevan
	Thanks Adarsh...But, in our case, since the company has not opened the bank account, they cannot appoint the auditors, hence they cannot have any audited financials (which is essential to be produced in s.560 case). Any idea what to do now?

Vasu...!!

No prob even if bank account were not opened.. just appoint an auditor..

n follow the procedure as mentioned in that forum...

WINDING UP OF THE COMPANY UNDER SECTION 560 OF THE COMPANIES ACT, 1956.

A Company can be wound up under section 560 of the Companies Act, 1956. For this, the Company should be defunct company i.e. a dormant company with NIL Assets and NIL Liabilities i.e. all the assets should be disposed off and all liabilities should be cleared.

For this purpose, the Company should prepare audited Accounts for the period ending not later than 30 days from filing the winding up application. Said accounts should show NIL Assets and NIL Liabilities.

Documents to be submitted to ROC:

Ø An application signed by minimum 2 Directors in case of Pvt. Ltd. And 3 Directors in case of Public Ltd. (preferably by all the Directors of the Company) (Annexure A);

Ø Indemnity Bond signed by minimum 2 Directors in case of Pvt. Ltd. And 3 Directors in case of Public Ltd. (preferably by all the Directors of the Company) and Notarised (Annexure B);

Ø Affidavit signed by minimum 2 Directors in case of Pvt. Ltd. And 3 Directors in case of Public Ltd. (preferably by all the Directors of the Company) and Notarised (Annexure C);

Ø Signed copy of latest audited Balance Sheet showing NIL assets and NIL liabilities; and

Ø Certified copy of Board Resolution (Annexure D).

After the Registrar is satisfied that the Company is defunct and has no assets and liabilities, he will issue notice to the Company for striking off the name from the register giving some time to withdraw the application, if required.

After the expiry of the time limit, he will issue notice thereby striking off the name of the Company from the Register maintained by him and will send the same to publish in the Official Gazette. Once the said notice is published in the Official Gazette, the Company stands struck off from the Register.

1 Like

vasudevan (.) (376 Points)
Replied 22 February 2010

Thanks Adarsh..

.Any idea, whether secretarial records needs to be updated. Actually, they did not have any activitiy, so,logically they would not have had any meeting/ resolutions na?

CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 22 February 2010

Originally posted by : vasudevan
	Thanks Adarsh.. .Any idea, whether secretarial records needs to be updated. Actually, they did not have any activitiy, so,logically they would not have had any meeting/ resolutions na?

Vasu,

Some compulsory statutory requirements shud be met by the company irrespective of any transaction..

like :- 4 board meetings in every year / 1 BODM in each quarter.. , AGM in prescribed time as per sec 166 & 210 ...

So, the company records must be maintained....

practically, u hv to assume that meeting were held n prepare records accordingly..

1 Like

vasudevan (.) (376 Points)
Replied 23 February 2010

Thanks Adarsh

CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 23 February 2010

U ARE ALWAYS WELCOME

Manjit (Partner) (21 Points)
Replied 25 May 2010

Hasnt the last date for this 'simplification procedure' come to an end. Do you have circular, notification, etc which emntions that this process can be followed?

thanks

manjit