Dissolution - Simplification of the existing procedure for removal of the names of defunct Indian companies from the register of Companies under section 560 - Companies Law - Letter : No. 9/7/83-CL-III,

Letter : No. 9/7/83-CL-III, dated 17-2-1987. Subject:- Dissolution - Simplification of the existing procedure for removal of the names of defunct Indian companies from the register of Companies under section 560 As you are aware, the matter regarding weeding out the names of defunct/dormant companies was discussed in the last Conference of Regional Directors/ Registrars of Companies held on 25th/26th June, 1986. It has now been decided that the following revised procedure be adopted by all the Registrars of Companies before the name of a company is struck off from the register of companies under section 560 of the Companies Act, 1956 : (a) An affidavit should be obtained from the Managing Director/Whole-time Director and in case there is none in a company then from two directors of the company to the effect that the company has no assets or liabilities as on date and the company has not been carrying on any business during the last one year or more which should be evidenced by a latest audited balance sheet and profit and loss account of the company; (b) An Indemnity Bond from the aforesaid Managing Director/Whole-time Director or two directors of the company to the effect that the liabilities of the company, if any, will be met by them even after the name of the company is struck off from the Register under section 560 of the Companies Act, 1956; (c) A notice should issue to the Income-tax Commissioner before striking off the name of a company under section 560 of the Companies Act, 1956, indicating its date of incorporation, registered address and stipulating that if no reply/objection is received within 3 months from the date of notice, the name will be struck off from the Register of Companies under section 560 of the Companies Act, 1956. In addition, Registrars of Companies will comply with the procedure as provided under section 560 of the Act.