COMPANY LAW SETTLEMENT SCHEME, 2010
A large number of companies after incorporation are not filing their due documents timely with the Registrar of Companies. Due to not filing the documents on time, companies are burdened with additional fee and facing the prosecutions also.
In order to give an opportunity to the defaulting companies to enable them to make their default good by filing belated documents and to become a regular compliant in future, the Ministry of Corporate Affairs has decided to introduce a Scheme namely, “Company Law Settlement Scheme, 2010,” condoning the delay in filing documents with the Registrar, granting immunity from prosecution and charging additional fee of 25 percent of actual additional fee payable for filing belated documents.
The details of the Scheme are as under:-
- The scheme shall come into force on the 30th May, 2010 and shall remain in force up to 31st August, 2010.
- This scheme applies to defaulting company to mean company registered under the Companies Act, 1956, which has made a default in filing of documents on the due date(s) specified under the Companies Act, 1956 and rules made there under;
- The defaulting company which has not increased its paid capital up to the threshold limit of rupees one lakh and rupees five lakh respectively as the case may be, shall first file its documents to increase their paid up capital up to the threshold limit under the scheme and thereafter would be allowed to file other belated documents;
- The defaulting company shall pay statutory filing fees as prescribed under the Companies Act along with an additional fee of 25 percent of the actual additional fee, payable on the date of filing of each belated document;
- The application for seeking immunity in respect of belated documents filed under the Scheme may be made electronically in the Form annexed, after closure of Scheme and after the document(s) are taken on file, or on record or approved by the Registrar of Companies as the case may be, but not after the expiry of six months from the date of closure of the Scheme. There shall not be any fee payable on this Form;
- The designated authority shall consider the application and upon being satisfied shall grant the immunity certificate in respect of documents filed in the Scheme;
- After granting the immunity, the Registrar concerned shall withdraw the prosecution(s) pending if any before the concerned Court(s);
- At the conclusion of the Scheme, the Registrar shall take necessary action under the Companies Act, 1956 against the companies who have not availed this Scheme and are in default in filing of documents in a timely manner.
For professional assistance on filing the annual returns for the company under the COMPANY LAW SETTLEMENT SCHEME, 2010, please contact:
Right Management Consultants Pvt. Ltd.
6-3-903/4, Somajiguda,
Hyderabad – 500 082.
Ph: + 91 40 66686110
Fax: + 91 40 23418794
Mobile: + 91 9849446110
E-mail: pavan@rightmc.com
