24 Jul 2010

Company Law Settlement Scheme, 2010

Observing that "a large number of companies are not filing their due documents timely with the Registrar of Companies" because of which "records available in the electronic registry are not updated and thereby are not available to the stakeholders for inspection" and also that because of "not filing the documents on time, companies are burdened with additional fee and facing the prosecutions also", the Ministry of Corporate Affairs, Government of India has recently introduced the Company Law Settlement Scheme, 2010 "to give an opportunity to the defaulting companies to enable them to make their default good by filing belated documents and to become a regular compliant in future".

The Scheme proposes "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", thereby ensuring that defaults are brought in line with the optimal set-up. The Scheme, however is of a limited duration and expires on 31st August, 2010.

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