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Home Articles Corporate Laws / IBC / SEBI Mr. M. GOVINDARAJAN Experts This |
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COMPANY LAW SETTLEMENT SCHEME, 2014 |
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COMPANY LAW SETTLEMENT SCHEME, 2014 |
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Section 92 of the Companies Act, 2013 requires a company to file annual returns. Section 137 requires that a copy of the financial statements, including all the documents which are required to be or attached to such financial statements under the Act, duly adopted at the time of Annual General Meeting of the company, shall be filed with the registrar within 30 days of the date of annual general meeting in such manner, with such fees or additional fees as may be prescribed under Section 403. Section 403(2) provides that where a company fails or commits any default to submit file, register or record of any document, fact or information before the expiry of the specified period the company and the officers of the company who are in default shall, without prejudice to the liability for payment of fee and additional fee, be liable for penalty or punishment provided for such failure of default. The above said documents are to be filed electronically on MCA 21. The annual accounts of the companies are treated very important in context of up-to-date Registry. The Ministry of Corporate Affairs observed a large percentage of companies have not filed their statutory documents making them liable for penalties and prosecution for non such compliance. The present Companies Act lays down a stricter regime for the defaulting companies with higher additional fees. Section 451 of the Act provides that if a company or an officer of a company commits an offence punishable other with fine or with imprisonment and where the same offence is committed for the second or subsequent occasions within a period of three years, then, that company and every officer thereof who is in default shall be punishable with twice the amount of fine for such offence in addition to any imprisonment provided for that offence. Further Section 164(2) provides that no person who is or has been a director of a company which-
shall be eligible to be re-appointed as a director of that company or appointed to other company for a period of 5 years from the date on which the said company fails to do so. In order to give an opportunity to the defaulted companies enabling them to make their default good by filing belated documents, the Central Government launched a scheme known as ‘Company Law Settlement Scheme, 2014’. This scheme will be in operation from 15.08.2014 to 15.10.2014. This scheme gives to such companies-
This scheme also gives an opportunity to inactive companies to get their companies declared as ‘dormant company’ as under Section 455 of the Act by filing a simple application at reduced fees. The details of this scheme are as detailed below:
are taken on file, or on record or approved by the Registrar of Companies as the case may be.
This scheme is not applicable to the filing of belated documents other than the following-
This scheme shall not apply to the companies as detailed below:
At the conclusion of this scheme the Registrar shall take necessary action under the Companies Act, 1956/2013 against the companies who have not availed this scheme and are in default in filing these documents in a timely manner.
By: Mr. M. GOVINDARAJAN - August 18, 2014
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