The Ministry of Corporate Affairs, in exercise of the powers under Section 611(2) and 637B (b) of the Companies Act, 1956 has introduced the “Company Law Settlement Scheme, 2010,” vide its General Circular No. 1 /2010 dated May 26, 2010.
Highlights of the scheme:
THE INTENT
- To get companies to do their statutory filings, in case they have not done so in the prescribed period
- To encourage companies to increase their authorized capital to the minimum capital required as per Section 3 of the Companies Act 1956.
PERIOD OF SCHEME
- The scheme opens on 30-05-2010 and closes on 31-08-2010.
THE BENEFITS
- To Companies
- Any delayed filing of document by a company can be done at a cost reduced by 75% on the additional fee payment
i.e. Fee in case of e filing of document = Normal filing fee + 25% of Additional filing fee
- Condoning the delay in filing documents with the Registrar
- Granting immunity from prosecution
- To Stakeholders
- The requisite documents would be available for inspection at public portals on timely basis
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