Easy Exit Scheme for Defunct Companies

A total of 2,42,376 companies are estimated to be “defunct companies” as on 10.12.2013. Giving this information in written reply to a question in the Rajya Sabha, Shri Sachin Pilot, Minister for Corporate Affairs, said that his Ministry had declared an Easy Exit Scheme twice : once in 2010 and then in 2011 to provide an opportunity for defunct companies to get their names struck off from the register of Registrar of Companies under Section 560 of the Companies Act. 35,174 number of companies availed the said scheme which was closed w. e. f. 30.04.2011. Shri Pilot further informed the House that the Ministry of Corporate Affairs has launched ‘Fast Track Exit Mode’ w .e. f. 03.07.2011 to provide an opportunity for defunct companies for getting their names struck off from the register of Registrar of Companies. A total of 11,623 companies have so far availed such scheme, which continues to operate.