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TMI BlogCOMPANY LAW SETTLEMENT SCHEME, 2014X X X X Extracts X X X X X X X X Extracts X X X X ..... COMPANY LAW SETTLEMENT SCHEME, 2014 X X X X Extracts X X X X X X X X Extracts X X X X ..... , fact or information before the expiry of the specified period the company and the officers of the company who are in default shall, without prejudice to the liability for payment of fee and additional fee, be liable for penalty or punishment provided for such failure of default. The above said documents are to be filed electronically on MCA 21. The annual accounts of the companies are treated very important in context of up-to-date Registry. The Ministry of Corporate Affairs observed a large percentage of companies have not filed their statutory documents making them liable for penalties and prosecution for non such compliance. The present Companies Act lays down a stricter regime for the defaulting companies with higher additional fees. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 451 of the Act provides that if a company or an officer of a company commits an offence punishable other with fine or with imprisonment and where the same offence is committed for the second or subsequent occasions within a period of three years, then, that company and every officer thereof who is in default shall be punishable with twice the amount of fine for such offence in addition to any imprisonment provided for that offence. Further Section 164(2) provides that no person who is or has been a director of a company which- * has filed financial statements or annual returns for any continuous period of 3 financial years; or * has failed to repay the deposits accepted by it or pay interest thereon or to redeem any debenture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on the due date or pay interest due thereon or pay any dividend declared and such failure to pay or redeem continuous for one year or more shall be eligible to be re-appointed as a director of that company or appointed to other company for a period of 5 years from the date on which the said company fails to do so. In order to give an opportunity to the defaulted companies enabling them to make their default good by filing belated documents, the Central Government launched a scheme known as 'Company Law Settlement Scheme, 2014'. This scheme will be in operation from 15.08.2014 to 15.10.2014. This scheme gives to such companies- * immunity for prosecution; and * charging a reduced additional fee of 25% of the actual additional fees pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yable under Section 403 of the Act read with Companies (Registration Office and Fees) Rules, 2014. This scheme also gives an opportunity to inactive companies to get their companies declared as 'dormant company' as under Section 455 of the Act by filing a simple application at reduced fees. The details of this scheme are as detailed below: * A defaulted company is permitted to file belated documents which were due for filing till 30th July, 2014; * The company is to pay statutory fee along with 25% of the actual additional fee; * If a defaulted company files any appeal against any notice issued or complaint filed before the competent court for violation of the provisions in respect of which application is made under this scheme, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant before filing for issue of immunity certificate, shall withdraw the appeal and furnish proof for such withdrawal; * The relevant application form CLSS 2014 may be made electronically annexing the following documents- * Proof of withdrawal of any appeal(s) against any notice issued or complaint filed before the competent court; * Details in respect of prosecution(s) pending against the company and its officers in respect of belated documents filed under the scheme which requires withdrawal by the Registrar; * Details of Director(s) declared as proclaimed offender or facing criminal case(s) for economic offences; * Optional document(s), if any are taken on file, or on record or approved by the Registrar of Companies as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case may be. * The designated authority shall consider the application and upon being satisfied shall grant the immunity certificate in respect of documents filed under this scheme; * After that the Registrar shall withdraw the prosecution (s) pending if any before the concerned Court (s). This scheme is not applicable to the filing of belated documents other than the following- * Form - 20B - Form for filing annual return by a company having share capital; * Form - 21A - Particulars of Annual return for the company not having share capital; * Form - 23AC, 23ACA, 23AC-XBRL and 23ACA - XBRL - Forms for filing balance sheet and profit and loss account; * Form 66 - Form for submission of Compliance Certificate with the Regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rar; * Form 23B - Form for intimation of appointment of auditors. This scheme shall not apply to the companies as detailed below: * Companies against which action for striking off the name under Section 560(5) has already been initiated by the Registrar of Companies; or * Where any application has been filed by the companies for action of striking off name from the Registrar of Companies; or * Where applications have been filed for obtaining dormant status under Section 455 of the Act; or * To vanishing companies. At the conclusion of this scheme the Registrar shall take necessary action under the Companies Act, 1956/2013 against the companies who have not availed this scheme and are in default in filing these documents in a tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely manner. X X X X Extracts X X X X X X X X Extracts X X X X
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