Over three lakh directors have been lately disqualified by the Ministry of Corporate Affairs for persistent default in filing enterprise annual return. The Ministry of Corporate Affairs (MCA) has now announced the Condonation of delay Scheme to offer a possibility for disqualified directors to regularise compliance. In this article, we have a look at salient capabilities of the Condonation of delay Scheme (CODS) alongside the MCA circular on Condonation of delay Scheme.
The Condonation of Delay Scheme (CODS) might be operational from 1st January 2018 to 30th April 2018 – a length of 3 months only. in the course of this period, the DIN ( Director Identification Number ) of disqualified directors might be re-activated quickly to facilitate Directors of defaulting companies to document all past due to annual returns. After the end of the 3-month duration, if the Director of a defaulting company didn’t utilize the scheme and regularise compliance, his/her DIN ( Director Identification Number) will be deactivated and he/she would be disqualified for a duration of five years. as a result, it’s really helpful for all directors of disqualified companies to utilize this scheme to regularise compliance.
Who will avail of the scheme?
A company registered underneath the businesses Act (1956 or 2013), that has defaulted in filing its financial statements or Annual Returns for an endless amount of 3 years with the Registrar of firms (ROC).
It is either a document, i.e. either financial or annual return.
Who cannot profit from the plan?
- Organizations whose names are struck off the enroll of organizations u/s.248(5) of the Companies Act, 2013.
- Organizations that aren’t a ‘defaulting organization’, i.e., organizations who have made default in recording its yearly return or monetary proclamation for under three years.
It proposes that there are organizations whose names are NOT struck off the enroll u/s.248(5) of the Companies Act, 2013 notwithstanding their failures to record yearly returns or financial statements for a nonstop time of three years. Furthermore, the irregularity is that the organizations who have neglected to record the said archives for just two back to back years are strikes off by ROC u/s.248(5) of the Companies Act 2013 !!!
This is so because according to by Section 248(1)(d) of the Act, where ROC has a sensible reason to trust that, in addition to other things, an company has not done any business or activity for a time of two immediately preceding financial years and has not connected for a status of lethargic organization u/s.455 of the Act.
Summary of the Scheme
Private Limited Company (LLP Company), One individual company (OPC), Section 8 Company, Limited Company and other organizations that are enrolled in India are required to record yearly return with MCA (Minister of Corporate Affairs) every year. Under the new Company Act 2013, Directors of organizations which have defaulted in recording yearly return endless for a time of three years are an obligated disqualification. On disqualification, the Director would be notable to consolidate another company or go about as Director of a current company for a time of three years.
In accordance with the Companies Act, 2013, the Ministry of Corporate Affairs has as of recently started “striking-off” defaulting organizations (company) and has precluded 3,09,614 Directors related with organizations that neglected to the financial statement or yearly returns for a consistent time of three budgetary years 2013-14 to 2015-16.
Any Inquiry related Condonation of Delay Scheme, DIN ( Director Identification Number ) KYC update, GST Return Filing, Income Tax Return Filing, GST Registration, TDS Return Filing, TDS on Property Filing
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