MCA to launch new settlement scheme for defaulting cos

Decides to grant immunity to defaulting companies from prosecution and charge only 25 pc of additional pay

PTI | August 9, 2011



The ministry of corporate affairs is going to launch new 'settlement' scheme from August 12 for defaulting companies who have not filed their statutory documents with the registrar of companies.

Under the 'Company Law Settlement Scheme-2011', MCA has decided to even grant immunity to defaulting companies from prosecution and charge only 25 per cent of additional pay payable if erring corporates file their documents.

"The new scheme is being launched throughout the country in order to give an opportunity to defaulting companies to enable them to make their default good by filing such belated documents and to become a regular compliant in future," registrar of companies, Raj Singh said in Chandigarh on Tuesday.

The scheme will come into force from August 12 and will remain in force up to October 31, 2011.

The ministry has observed that because of non-filling of statutory documents (balance sheets and annual returns) by a large number of companies, records are not updated and thereby stakeholders could not inspect the same, he added.

Singh said in Punjab, Chandigarh and Himachal Pradesh, about 8,000 companies had not filed their balance sheets and annual returns with registrar of companies.

Registrar will be taking action under Companies Act, 1956 against defaulting companies who do not avail the settlement scheme, he said.

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