Company Law Settlement Scheme, 2011
Company Law Settlement Scheme, 2011
The Company Law Settlement Scheme basically gives a chance to all defaulting companies for mending their default which might be in making annual filings of previous years related to annual returns, annual financial statements and secretarial compliance certificates with the Registrar of Companies. The Scheme was introduced as a consequence of the observation that a number of companies were not filing their due documents on time with the Registrar of Companies. Under this scheme any “defaulting company” is permitted to file belated documents in accordance with the provisions of this Scheme but there is a condition to it that any defaulting private company or public company which has not increased its paid capital up to the threshold limit of rupees one lakh and rupees five lakh respectively as provided in sub section (3) and (4) of section 3 of the Companies Act, 1956, shall first file its documents to increase their paid up capital up to the threshold limit under the scheme and only then would be allowed to file other belated documents.
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, in exercise of the powers under Section 611(2) and 637B (b) of the Companies Act, 1956 has decided to introduce the scheme 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.
This scheme will help the defaulting companies to file any belated document pending for being filed with the ROC. Besides this, the Scheme provides an opportunity to all such companies who have not increased their paid-up capital to the prescribed limits to do so, and then file the other documents as
The Company Law Settlement Scheme basically gives a chance to all defaulting companies for mending their default which might be in making annual filings of previous years related to annual returns, annual financial statements and secretarial compliance certificates with the Registrar of Companies. The Scheme was introduced as a consequence of the observation that a number of companies were not filing their due documents on time with the Registrar of Companies. Under this scheme any “defaulting company” is permitted to file belated documents in accordance with the provisions of this Scheme but there is a condition to it that any defaulting private company or public company which has not increased its paid capital up to the threshold limit of rupees one lakh and rupees five lakh respectively as provided in sub section (3) and (4) of section 3 of the Companies Act, 1956, shall first file its documents to increase their paid up capital up to the threshold limit under the scheme and only then would be allowed to file other belated documents.
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, in exercise of the powers under Section 611(2) and 637B (b) of the Companies Act, 1956 has decided to introduce the scheme 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.
This scheme will help the defaulting companies to file any belated document pending for being filed with the ROC. Besides this, the Scheme provides an opportunity to all such companies who have not increased their paid-up capital to the prescribed limits to do so, and then file the other documents as