The Ministry of Corporate Affairs, Government of India, has re-launched “Easy Exit Scheme-2011 (herein after called EES)” giving an opportunity to “Defunct Companies” to get their name strike off from the register of Companies. The said scheme has been notified vide circular No.6/2010. Further, the said scheme will be effective from 1st January, 2011 to 31st January, 2011.
Pursuant to EES, Companies which are inoperative since incorporation or commenced business after incorporation but later on became inoperative are eligible for said scheme. Such Companies will be termed as “Defunct Companies”. As per definition of EES, Defunct Companies are Companies, which has an active status at MCA portal and:-
1. Which are not carrying on any business or not in operation on or after 1st April, 2008; or
2. Which did not raise their minimum paid up Capital i.e. Rs. 1,00,000/- or Rs. 5,00,000/-.
Non-applicability of said Scheme: – The Scheme does not cover the following companies:-
- Listed companies;
- Companies that have been de-listed,
- Companies registered under section 25 of the Companies Act,1956;
- Vanishing companies;
- Companies where inspection or investigation is ordered and being carried out or yet to be taken up or where completed prosecutions arising out of such inspection or investigation are pending in the court;
- Companies where order under section 234 of the Companies Act, 1956 has been issued by the Registrar and reply thereto is pending or where prosecution if any, is pending in the court;
- Companies against which prosecution for a non-compoundable offence is pending in court;
- Companies accepted public deposits which are either outstanding or the company is in default in repayment of the same;
- Company having secured loan ;
- Company having management dispute;
- Company in respect of which filing of documents have been stayed by court or Company Law Board (CLB) or Central Government or any other competent authority;
- Company having dues towards income tax or sales tax or central excise or banks and financial institutions or any other Central Government or State Government Departments or authorities or any local authorities.
Documents required for submission of an application: – To submit an application with Registrar of Companies, Ministry of Corporate Affairs, Government of India, following documents are required:
- A certified true copy of Board Resolution
- A declaration from Directors about pending litigation, involving Company
- An affidavit, each form existing Directors, duly notarized
- An indemnity bond, each from existing Directors
- A Statement of Accounts as on date, duly certified by Chartered Accountants in Practice;
- A Form EES, 2011, duly signed, manually, by Director (If there is no Digital Signature of Director)
Note: – The aforesaid documents are compulsory and other documents may be required on case to case basis.
Fee payable to Ministry of Corporate Affairs:-
A fee of Rs. 3,000/- (Rupees Three Thousand) is to be paid to Registrar of Companies, Ministry of Corporate Affairs, Government of India. The same could be paid though Cash/ Credit Card/Net Banking/ Cheque/ Bank Draft.