FAST TRACK EXIT MODE The new companies act comes with a number of compliances, to ensure greater transparency. Those companies, which fall in any of the following categories, may prefer the fast track exit mode for striking off of the name of their company, to save themselves off compliances, which shall be an extra cost and thus be burdensome to them. Applicability/ Eligibility: a. Companies which are not operating or not carrying on any business since last one year from the date of application or, b. Companies which are not operating or not carrying on any business since incorporation and, c. Company having Nil assets & liability. However, all companies which want to apply shall have ‘active’ or ‘dormant’ status on MCA portal. Ineligibility for making application for strike off of name: 1. Listed Companies 2. De-listed Companies due to non- compliance of Listing Agreement or any other statutory Laws 3. Section 25 Companies 4. Vanishing companies 5. Companies where investigation / inspection ordered and yet to be taken up or pending 6. Companies where order u/s 234 has been issued by ROC and reply is pending 7. Companies where prosecution for a non-compoundable offence is pending in court 8. Companies accepted deposits which are outstanding or default in repayment 9. Company having secured loan 10. Company having management dispute 11. Company for which filing of docs have been stayed by court or CLB or CG or any other competent authority 12. Company having dues of Income tax / sales tax / central excise / banks / financial institutions / CG / SG / other local authorities 13. Companies not having active / dormant status on MCA portal Liabilities of directors after striking off the name of the Company by ROC:- (a) to pay and settle all lawful claims arising in future after the striking off the name of the Company. (b) to indemnify any person for any losses that may arise pursuant to striking off the name of the Company. (c) to settle all lawful claims and liabilities which have not come to notice even after striking off the name of the Company.
Posted on: Thu, 24 Jul 2014 07:00:11 +0000