Deposit of unpaid amount to credit of IEPF under section 205C of the Companies Act, 1956 - Violation thereof, prosecution for - Companies Law - 01/2006

General Circular No. 01/2006 Government of India Ministry of Company Affairs 5 th floor, A-Wing, Shastri Bhawan, Dr. R.P. Road, New Delhi-11001. Dated: 02.01.2006 Deposit of unpaid amount to credit of IEPF under section 205C of the Companies Act, 1956 - Violation thereof, prosecution for General Circular No. 1/2006, dated 2-1-2006 Recently a reference has been made to the Ministry on interpretation and implementation of spirit behind General Circular No. 6/2004 vide F. No. 17/63/99 CL.V dated 10th August, 2004 wherein it was mentioned that in cases where compliance has actually been made by the company in question on or before 31st March, 2003 by deposit of requisite amount into the IEPF, the objective of the previous Circular No. 22/2002 dated 23rd September, 2002 shall be deemed to have been satisfied and, therefore, a company should not be prosecuted on grounds of delay up to March, 2003. The matter is examined and clarified that the objective of the Circular dated 10th August, 2004 is clear and unambiguous which provides relief to such companies on grounds of delay against the penal action where compliance had actually been made by the company in depositing the unpaid dividend and other amounts referred to in section 205C of the Act subsequent to the Circular No. 22/2002 dated 23rd September, 2002 on or before 31st March, 2003. Therefore, all Regional Directors and Registrar of Companies are advised to take note of the spirit behind Circular dated 10th August, 2004 while contemplating action under section 205C of the Act and proceed in only those cases where compliance had not been made by 31st March, 2003. Accordingly, further action to withdraw prosecution may be taken, wherever filed, against such companies, as are compliant with the requirements quoted at para 1 above and their Directors.