Wednesday, August 13, 2014

COMPANY LAW SATTLEMENT SCHEME (CLSS), 2014



OPPORTUNITY FOR DEFAULTING COMPANIES AND ITS DIRECTORS

Due to stricter regime for defaulting companies with higher additional feeas per New Companies Act 2013 and on representation by defaulting companies MCA has given one time opportunity by declaring CLSS 14 (company law settlement scheme-2014).  In this Scheme MCA gives immunity for prosecution to directors of defaulting companies and gives an opportunity by condoning the delay in filing annual reports, financial statement and related documents due for filing on or before 30/06/2014 and charging reduced fee. Such defaulting companies can avail this one time opportunity to e- file these documents before15/10/2014.

SALIENT FEATURES
v  Scheme is valid for two months from 15th August 2014 to 15th October 2014
v  The defaulting Company shall for filing of belated documents by paying only normal fee plus 25% of additional fee payable.
v  Application for issue of Immunity Certificate after filing of belated documents and after they are approved by MCA has to be E-Filed and such application form will be available on MCA Portal from 1st September, 2014. Such Application may be filed without any fee but before 15.01.2015 ( not later than 3 months from the date of the closure of the scheme )
v  Immunity from prosecution of the directors of defaulting companies
v  Avoid disqualification under section 164(2) of the companies act, 2013 of all the directors.
v  Scheme applicable for all forms due to be filed till 30/06/2014 i.e 23AC, 23ACA, 23AC-XBRL, 23ACA-XBRL, 20B, 66, 23B, 21A due till 30/06/2014
v  The defaulting inactive companies 
a)    Can apply to get themselves as dormant Company by filing MSC -1 at 25% fee, OR
b)    Can apply for striking off the name by filing FTE at 25% of fee payable