The Ministry of Corporate Affairs has come out again with the much awaited Company Law Settlement Scheme in exercise of its powers under Section 611(2) and 637B (b) of the Companies Act, 1956 “Company Law Settlement Scheme, 2010.
Under the scheme an opportunity is given to the defaulting companies to make their default good by filing belated documents and to become regular compliant in future.
Reliefs provided in scheme are:
- 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.
Defaulting company shall mean a company registered under the Companies Act, 1956 and a foreign company falling under section 591 of the Act, which has made a default in filing of documents on the due date(s) specified under the Companies Act, 1956 and rules made there under;
The scheme is valid from 30th May, 2010 to 31st August, 2010.
The Scheme shall not apply to following:
- Filing of documents for incorporation or establishment of place of business in India
- Where specific order for condonation of delay or prior approval under the provisions of the Companies Act, 1956 is to be obtained from the Company Law Board or the Central Government or Court or any other Competent Authority is required.
- Companies against which action under sub-section (5) of section 560 of the Act has been initiated by the Registrar of Companies
- 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.
How the Scheme will function
- The defaulting company shall pay statutory filing fees as prescribed under the Companies Act and rules made there under along with an additional fee of 25 percent of the actual additional fee standardized under sub-section (2) of Section 611 of the companies Act, 1956,payable on the date of filing of each belated document;
- The application for seeking immunity in respect of belated documents shall be made electronically in the Prescribed Form.