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TMI BlogStreamlining the working of Registrars of Companies -Report of the Review CommitteeX X X X Extracts X X X X X X X X Extracts X X X X ..... . However, it is a matter of common knowledge that a host of these services are not being provided as promptly as desirable. The registration of documents including the charges is not getting adequate attention, with the result a large number of documents are pending for registration. The very purpose of public inspection and establishment of Registries is, therefore, not being served adequately. The Committee has made a number of recommendations for implementation either by issue of administrative instruction or by amending the Rules/provisions of the Companies Act, 1956. The report of the Committee has been considered by the Government and steps are being taken separately to amend the rules and the law. In the meantime, you are hereby directed to implement the following recommendations of the Committee, with immediate effect : Availability of names : (i) The Government has increased the application fee from Rs. 100 to Rs. 500 with effect from 1-11-1994. In view of computerisation in this area in most of the offices, you are advised to make arrangements for a computer terminal being available in your office for few hours on all working days to the promoters or their represe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed names like Hindustan Sugar Limited, the main object should constitute only that object (like sugar in case of Hindustan Sugar Ltd.), while in case of non-object oriented names (like Tata Sons Limited) there should be no restriction as to the number of main objects. Similar should be the approach in case of companies having names with general expressions like "Industries/Enterprises", etc., without prefixing the nature of industry or enterprise. In either case, it may be ensured that objects specified in the Memorandum of Association are those specified against Column No. 5 of Form 1A (vi) It is clarified that there cannot be any restriction for incorporation of a company where all the subscribers to the Memorandum Articles of Association/proposed directors are residing abroad, being either foreign nationals or NRIs subject to the approval of RBI, where necessary. Preservation of records and weeding out : (vii) There is huge backlog of documents pending for destruction with ROC Offices. This is an area which has been neglected by ROCs so far and has created many problems including availability of space for records. ROCs are advised to give their personal attention to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a certification. The proposed simplified procedure specified above, will ensure that these documents are registered the same day and endorsed document be returned to the Company representative across the table. The Rules are being amended in this behalf and will be notified to ROCs shortly. Balance sheet and Annual return : (xi) These are recurring documents required to be filed every year by every company. These do not require elaborate scrutiny at filing stage except to ensure that the fee is paid, enclosures referred to therein are available along with the accounts of subsidiaries and other supporting documents like profit and loss account/director's report/auditors' report, etc., in the manner required. Compliance of these requirements be checked at the filing stage itself and the documents be straightway taken on record. Form relating to appointment/cessation of Directors : (xii) A large number of Form 32 are filed in the ROC offices. This relates to changes in the composition of the Board of Directors. This is a very simple document not requiring any examination except to ensure that it is signed and the fee is paid. Such documents should be taken on record on da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncerned is within the jurisdiction of that office. As per the existing practice, a standard letter is issued to the transferee by registered post along with the impugned transfer deed, extending the time upto one month from the date of issue, and a copy of the letter is also endorsed to the company concerned. This itself is a time consuming process. It has now been decided that instead of issuing the letter, only an endorsement may be made by rubber stamp on the transfer deed itself. In view of this simplified procedure, it should be possible that the required endorsement be made by the Registrar/Assistant Registrar, the same day of receipt of application and returned to the investor concerned across the table. Delegation of powers to ROCs : (xvi) It has been decided to delegate powers under section 31 of the Act to ROCs, hitherto delegated to RDs. It has also been decided that the power of ROC be enhanced from Rs. 1,000 to Rs. 10,000 under section 555(7)(b) of the Act. It is also proposed to delegate the power to ROCs for change of name under section 572 of the Act. Necessary notifications in this behalf will be issued shortly. Harmonisation of practices : (xvii) It is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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