Clarification regarding Simplified Exit Scheme, 2005

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..... plications received under section 560 of the Companies Act, 1956 prior to the commencement of SES 2005 also. 3. ROCs are further advised to add a new clause to the Affidavit (Annexure B ) with reference to Indemnity Bond to General Circular No. 2/2005 to the effect that the applicant company has no assets and liabilities as under: 6A. The company..........Private/Limited has no assets and no liabilities as on the date of the Affidavit. Clarifications on simplified Exit Scheme, 2005 Query Reply Whether balance sheet and annual return for earlier/initial periods would be required to be filed. Para 7 of general Circular No. 2 of 2005 is clear on this aspect. They are not required to be f .....

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..... e limits prescribed under section 3 are not complied with. What compliance would be required in case of a private company which has not amended its articles to indicate new clause about prohibition on invitation or acceptance of deposits from persons other than its Members, Directors or their relatives? There is no bar to such companies applying. Whether a company which has already been served with a notice of default under section 159/166/10/220 can apply under SES? Further whether a company against which a case is pending in economic offences Court on such offences can apply under SES, 2005 ? Attention is drawn to para 8 of general Circular 2 of 2005. No further clarification is necessary. Companies being .....

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..... pital pursuant to section 3(3) and 3(4) are eligible or not under the Scheme. Yes, they are eligible. They should apply under the Scheme. The words No assets and liabilities means what this needs to be clarified. No asset and liabilities means when the company applies under SES there will be no asset in its possession and it will have no liabilities. According to the present section 3(5) companies which have defaulted under section 3(3) and 3(4) are deemed to be a defunct company and there should be struck off by ROC automatically under section 560. No doubt those companies, which have defaulted under section 3(3) and 3(4), are deemed defunct companies under section 3(5). However, ROC .....

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