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| Few takers for Easy Exit Scheme and Company Law Settlement Scheme |
| Vijay C Roy / New Delhi/ Chandigarh Sep 03, 2010, 00:12 IST |
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The Registrar of Companies (ROC) of Punjab, Haryana, Himachal Pradesh and Chandigarh received poor response from corporates for its Easy Exit Scheme (EES) and Company Law Settlement Scheme (CLSS), meant for compliance with the company laws. Only 4,446 companies situated in these states opted for the scheme, out of the total 11,888 companies that have been served notices for violating various provisions of company laws for several years. The last date of the closure of the schemes was August 31.
Taking a serious note of the issue, now ROC is preparing to prosecute the remaining companies that failed to adhere to company laws. CLSS scheme for corporates, gives companies a chance to file their pending mandatory documents, like annual reports and balance sheets, after paying a nominal fine. While, under the EES, companies seeking to wind up business can approach the Registrar of Companies within the stipulated period and get their names struck off by adopting simplified procedures. While 3,690 companies opted for CLSS scheme, EES scheme was availed by 756 companies, out of the total 11,888 companies that had been served notices.
Registrar of Companies Raj Singh said, “We will file prosecution against the remaining 7,442 companies. The proceedings has already been started in this direction and for this purpose 13-member team has been formed and lawyers have also been included from the central government panel.”
He added, “ Earlier, we have served notices to 11, 888 companies situated in these states. These companies had not filed balance sheets to the registrar of companies for consecutive three years. As these companies were found guilty of the contravention of the provisions of the section 162, 168, 210 & 220 of companies Act 1956, so notices was served. According to the provisions of several sections these companies and its directors can be fined '1,000 per day. For this such companies and its directors were given time upto August 31.”
He added, “ It is mentioned in section 433 of companies act that the companies not filing their balance sheet for 5 years can be dissolute through high court. For this ROC has to make an application in High Court.” He told that the possibility of such actions on some big companies cannot be ruled out.
The list of such companies has also been provided to Income Tax Department so that they can also take action for not filing ITR and can take necessary action against these companies as filing income tax return is mandatory under Income Tax Act. ROC office is looking for such directors who have not filed the balance sheet of their companies.
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