|
Date of launching and date of ending |
The SES 2005 will come into operation on 1.2.2005 and will continue
till 31.7.2005 |
|
Eligibility for availing the scheme |
Companies which did not carry any business at any time and companies
that carried out some business activity but discontinued the same
thereafter |
|
Eligibility of NBFCs |
If such NBFC is not registered with RBI and also has not carried any
operations since incorporation. In case of the NBFC being registered
with RBI, a no objection letter needs to be obtained |
|
Eligibility of Section 25 Companies |
Not eligible |
|
Eligibility of Collective Investment Management Companies |
If such Company is not registered with SEBI and also has not carried
any activity since incorporation. In case of such Company being
registered with SEBI, a no objection letter from SEBI needs to be
obtained |
|
Eligibility of Government Companies |
Government Companies having no assets and liabilities are eligible to
apply |
|
Basic requirement |
The Company should not have any assets and liabilities |
|
Application |
Application should be in prescribed form along with a Board resolution
if a validly constituted Board is in existence for availing the
scheme. |
|
Signatories to the application |
The application should be signed by two directors of the company which
will include Managing Director or Whole Time Director, if there is
one. However, the no. of Directors has fallen below the quorum fixed
by Regulation 75 of Table A of Schedule I or articles of association
of such Company, the continuing directors can increase the number of
directors to the stipulated minimum. Foreign nationals and NRIs can
also apply after adhering to the provisions of Section 558 of the
Companies Act, 1956 |
|
Other documents to be attached |
Affidavit by the applicants sworn before a Magistrate/ Executive
Magistrate/ Oath Commissioner/Notary to the effect that the Company
has not carried on any business or has carried some business for a
period upto a date (which should be specified) and then discontinued
operations, as the case may be and the Company has no assets and
liabilities. Indemnity bond duly notarized to the effect that should
there be any liabilities on the Company, such liabilities will be met
in full by the applicants, even after the name has been struck off. |
|
Liability of applicants |
The liability of applicants as per Indemnity bond would be joint and
several |
|
Filing of Accounts in case of companies which have not carried any
business since the date of incorporation |
In such cases, where the companies have no financial information to
provide, it would be sufficient if the applicants furnish a
declaration in affidavit itself that the company has no assets and
liabilities. No separate financial statements need to be attached.
However, if such companies were filing financial statements, they
should file the financial statement for the latest year prepared upto
a period which ended one month preceding the date of application. |
|
Filing of Accounts in case of companies which have carried some
business and have discontinued operations |
Such companies should file audited financial statements for the period
upto which they carried on business provided such period is one
accounting year or more. For subsequent period, a statement of
account for the latest year prepared upto a period which ended one
month preceding the date of application is to be filed. Where such
period of operation is less than one accounting year, then it would be
sufficient to submit a statement of account. A declaration also needs
to be submitted that the Statement of Account so submitted gives a
true and fair view of the Company's financial position and reasons for
non-submission of audited financial statements. However, if a company
opts to file regular audited financial statement even for subsequent
period, it can do so. |
|
Pending litigations |
A company against which any prosecution for a non-compoundable offence
is pending shall not be allowed to avail this scheme. A company
applying under the scheme shall declare the list of pending
litigations against it while applying under the scheme. Companies
which are involved in compoundable offences under the Companies Act,
1956, need to first make a compounding application and then apply
under the scheme. |
|
Penal action |
No penal action would be taken against eligible companies which have
availed the scheme. However after the scheme ends, the Ministry would
take necessary penal action under the Companies Act, 1956 against such
defunct companies which have not availed of this scheme. |
|
Effective date for strike off |
The effective date when the Company shall be deemed to be struck off
from the Register of Companies would be from the date of issue of
order/Notification by the ROC |
|
Fees payable on the application |
Fees payable is Rs.3,000/- |
|
Format of application, affidavit, indemnity bond, statement of
account, etc. |
All the formats are available as annexures to General Circular
No.02/2005 dated 28.1.2005 and can be downloaded from the DCA website
at
www.dca.nic.in |
