Company Law Settlement Scheme, 2011 - Relief to Defaulting Companies
A large number of companies are not filing due statutory documents (i.e. Balance Sheets and Annual Returns) timely with the Registrar of Companies.
Due to this, the records available in the electronic registry are not updated and thereby are not available to the stakeholders for inspection. Further, due to not filing the documents on time, companies are burdened with additional fee, facing the prosecutions and being debarred from filing other documents electronically.
The ministry has decided to introduce the "Company Law Settlement Scheme, 2011" 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 under the Companies Act, 1956 and the rules made there under.
The Scheme will come into force on 12th August 2011 and will remain in force until 31 October 2011.
After granting immunity, the Registrar will withdraw pending prosecutions.
MOC General Circular No. , Dated: August 05, 2011