Brief Note on Condonation of Delay Scheme (CODS), 2018
Definition
Defaulting
company
means a company which has not filed its financial statements or Annual returns
as required under the Companies Act, 1956 or Companies Act, 2013, as the case
may be, and the Rules made thereunder for a continuous period of three years.
About the Scheme
Condonation
of Delay Scheme, 2018 has been notified vide General Circular No. 16/2017 dated29th December, 2017 and purpose of the scheme to give the relief to
the Defaulting Companies and disqualified Directors. This scheme shall be
effective from 1st January, 2018 and shall remain in force up to 31st
March, 2018.
Means only three months period has been given to the
Defaulting companies and disqualified directors to file their overdue
documents/report/returns.
Applicability
This
Scheme is Applicable to all defaulting Companies (Other than the Companies
which have been stuck off/whose name have been removed from the register of
Companies under section 248(5) of the Act). A defaulting company can file its
overdue documents which were due for filing till 30th June, 2017
means up to the financial year ending on 31st March, 2016.
Why this scheme has been introduced/launched?
Every
company registered under Companies Act, 1956 or 2013 are required to file their
Annual Financial statements and Annual Return with the concerned Registrar of
Companies within 30 days and 60 days from the Date of Annual General meeting or
due date of Annual General Meeting whichever is earlier respectively and with
such additional period and fees prescribed under section 403 of the Companies
Act, 2013. Non filing of the said reports is an offence under the said
Act.
Section 164 (2)
read with section 167 of the Companies Act, 2013 provide for disqualification
of a director on account of non-filing of financial statements or Annual Return
for a continuous period of three years. And every Director disqualified shall
inform to the concerned Company about his disqualification in form DIR-8.
Now, earlier
before this scheme, Ministry of Corporate Affairs (MCA) had launched Company
Law Settlement Scheme, 2014. The purpose of the scheme was the same, to provide
immunity to the defaulting companies and relief to the disqualified Directors
in the same manner.
But in current
scenario, the Government was strict and has taken major steps. MCA in September,
2017, identified approx. 3 lakh Directors associated with the defaulting
Companies and they were barred from accessing the online registry and their DIN
has de-activated for 5 years from the date of default.
After this step,
ministry received so many representation from industry, defaulting Companies
and their directors seeking an opportunity and giving them some relief to
normalize their business operations. Some disqualified Directors also filed
writ petition before High Courts seeking relief from disqualification. So, this
scheme has been launched by the Ministry.
Under this
scheme, DIN of disqualified directors shall be temporarily activated during the
validity of the scheme to enable them to file overdue documents.
Which e-form can be filed under the
Scheme?
Under this
scheme only below mentioned e-forms can be filed:
1.
Form
20B/MGT-7 – Annual Return by a company having share capital
2.
Form
21A/MGT-7 – Annual Return by a company not having share capital
3.
Form
23AC, 23ACA, 23AC-XBRL, 23ACA- XBRL, AOC-4, AOC-4 (CFS) and AOC-4 (XBRL) –
Financial Statements
4.
Form
66 – Compliance Certificate
5.
Form
23B/ ADT-1 – Intimation for Appointment of Statutory Auditors
Procedure
The defaulting
companies shall file its overdue documents and after filing the overdue
documents, the defaulting company shall seek Condonation of delay by filing
form e-CODS to the Registrar of Companies. The fee for filing e-form CODS is
Rs. 30,000/- (Rupees Thirty Thousand only).
Effect of the Scheme
The DIN of the
disqualified directors shall be permanent activated and defaulting company’s
status shall be active and they can continue their business with the same
directors.
And Registrar
concerned shall withdraw the prosecution(s) pending if any before the concerned
court(s) for all documents filed under the scheme. However, this scheme is
without prejudice to action under the section 167(2) of the Companies Act, 2013
or civil and criminal liabilities, if any, of such disqualified directors
during the period they remain disqualified.
Punishment if not avail this scheme
In case
Defaulting Companies did not file their overdue documents under this scheme
then the DIN of disqualified directors of the concerned Companies shall be
de-activated after expiry of the said scheme and Registrar shall take all
necessary actions under the Companies Act, 1956/2013 against the Companies who
have not availed themselves of this scheme and continue to be in default in
filing the overdue documents.
Note:
1. The DINs in respect
of disqualified Directors have been activated w.e.f. 12th
January, 2018 and the status of the relevant DINs can be checked on the portal.
Further note that the scheme is not applicable for those Directors who may have
been associated with a company which was struck off under Section 248(1) of the
Companies Act-2013 and DINs for such individuals shall be re-activated only
upon receipt of orders for revival of the said company, as per due process laid
down under Section 252 of the Companies Act-2013.
Contact Details:
VISHAL SHARMA
Company Secretary
Mob: 9716763754
Email: csvishalpbs@gmail.com
FOR MORE ARTICLES VISIT TO:
http://csvishalsharma.blogspot.in/
-
Disclaimer: The Content is prepared on the basis of our general understanding and on the basis of relevant provision of Companies Act, 2013 read with rules made there under. The whole content is only for the knowledge sharing purpose, we do not take any responsibility for the correctness of the same.
Disclaimer: The Content is prepared on the basis of our general understanding and on the basis of relevant provision of Companies Act, 2013 read with rules made there under. The whole content is only for the knowledge sharing purpose, we do not take any responsibility for the correctness of the same.
The Best 7 Casino Restaurants Near Santa Barbara, CA | MapYRO
ReplyDeleteFind the 전라북도 출장안마 best 군포 출장마사지 7 Casino restaurants in Santa Barbara, CA on MapYRO. The 안동 출장안마 casino has 9 공주 출장안마 restaurants, the most 논산 출장샵 recent all-star winner was the Buffet at Harrah's.