2 min read
Journalism of Courage
Premium
This is an archive article published on January 29, 2005
Companies get simpler exit scheme
The government on Friday further simplified the exit scheme for defunct companies sans assets or liabilities. As per the new Simplified Exit...
The government on Friday further simplified the exit scheme for defunct companies sans assets or liabilities.
As per the new Simplified Exit Scheme SES 2005 notified by the ministry of company affairs, companies which have not carried out any operations, business or commercial activity since their incorporation, will not be required to furnish magisterial affidavit for exit.
A mere declaration by the applicant would suffice. There would be no need to attach separate audited financial statements for such firms wanting to exit. As for defunct companies which had carried out operations in the past, the application for exit must accompany affidavit attested by a magistrate, or a notary public.
Under the existing scheme, which had failed to evoke sufficient response from defunct companies, the affidavit attested by a first class magistrate was mandatory.
The application should further be accompanied by an Indemnity Bond, duly notarised to the effect that liabilities if any on the company would be met in full by the applicants, even after the name of the company is struck off the register of the companies.
Such applicants will be liable jointly as well as severally.
The SES 2005 will come into operation on February 1 this year and will continue till July 31. No penal action would be initiated against companies availing of this scheme.
Story continues below this ad
After the scheme ends, the ministry would take penal action under the Companies Act, 1956 against defunct companies which have not availed of this opportunity or have not complied with the provisions of the Act.
Advertisement
Loading Taboola...
Live Blog
PHOTOS
Top Stories
Advertisement
Must Read
Advertisement
Buzzing Now
- 01
- 02
- 03
- 04
- 05
Advertisement