It has been observed that a large number of companies are not filing their due documents timely with the Registrar of Companies. Due to this, the records available in the electronic registry are not updated and thereby are not available to the stakeholders for inspection. Further, due to not filing the documents on time, companies are burdened with additional fee and facing the prosecutions also.
There are many companies, who have also not increased their paid up capital up to the threshold limit provided in sub-section (3) and sub-section (4) of Section 3 of the Companies Act, 1956.
In order 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 Ministry, in exercise of the powers under Section 611(2) and 637B (b) of the Companies Act, 1956 has decided to introduce a Scheme namely, "Company Law Settlement Scheme, 2010," condoning the delay in filing documents with the Registrar, granting immunity
1. The scheme shall come into force on the 30th May, 2010 and shall remain in force up to 31st August, 2010.
2 . Definitions.--
In this Scheme, unless the context otherwise requires, -
(a) "Act" means the Companies Act, 1956 (1 of 1956);
(b) "company" means a company registered under the Companies Act, 1956 and a foreign company falling under section 591 of the Act;
(c) "defaulting company" means a company registered under the Companies Act, 1956 and a foreign company falling under section 591 of the Act, which has made a default in filing of documents on the due date(s) specified under the Companies Act, 1956 and rules made there under;
(d) "designated authority" means the Registrar of Companies having jurisdiction over the registered office of the company.
3 . Applicability.--
Any "defaulting company" is permitted to file belated documents in accordance with the provisions of this Scheme:
Provided that any defaulting private company or public company which has not increased its paid capital up to the threshold limit of rupees one lakh and rupees five lakh respectively as provided in sub section (3) and (4) of section 3 of the Companies Act, 1956, as the case may be, shall first file its documents to increase their paid up capital up to the threshold limit under the scheme and thereafter would be allowed to file other belated documents;
4 . Manner of payment of fees and additional fee on filing belated document for...