CODS SCHEME 2018
This query is : Resolved
12 February 2018
Mr. A and Mrs. B are (Husband-wife) are disqualified Directors for period 01.11.2016--31.10.2021
Mr. A is a director in 4 companies ( W,X,Y,Z Private Ltd) out of which W,X Pvt. Ltd is striked off by ROC due to non filing of annual returns.
Mrs. B is a Director in Y,Z Private Limited whose status is active.
Now Mrs. B wants to continue business.
1. Can Mrs. B avail benefit of CODS..?
2. Can Mrs. B appoint additional Director and conduct business…?
3. From which date additional Director is be appointed..?
4. Who will sign previous years balance sheet till 31.03.2017…Mr. A and Mrs. B …?
5. What is the expenditure for CODS..? For Y,Z Pvt. Ltd we have to pay compounding fees of Rs. 30,000 each…?
13 February 2018
Dear experts,
Please revert.
13 February 2018
B can apply for CODS in Co. Y&Z, whose status is active. You may also go through this link
https://www.caclubindia.com/articles/removal-of-disqualification-of-director-without-reviving-company--32407.asp
https://www.caclubindia.com/articles/removal-of-disqualification-of-director-without-reviving-company--32407.asp
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13 February 2018
As there are only 2 Directors in active company i.e. A and B.....How B will appoint new director...?
It has to be appointed through back end...?
what will be the date of appointment...?
19 July 2024
It seems you're asking about various aspects related to the Companies Fresh Start Scheme (CFSS) 2018 under the Companies Act, which provides benefits for companies to make a fresh start. Let's address each question based on the details provided:
### 1. Can Mrs. B avail benefit of CODS?
The Companies Fresh Start Scheme (CFSS) 2018 was intended to provide relief to disqualified directors by allowing them to file overdue documents without payment of additional fees. Since Mrs. B is a disqualified director until 31st October 2021, she can avail the benefit of CFSS for the companies she is associated with (Y and Z Pvt. Ltd).
### 2. Can Mrs. B appoint an additional Director and conduct business?
Yes, Mrs. B can appoint an additional director to the board of Y or Z Pvt. Ltd to continue conducting business operations effectively.
### 3. From which date can the additional Director be appointed?
The appointment of an additional director can be made from the date of resolution passed by the Board of Directors. This resolution should specifically authorize the appointment and mention the effective date from which the additional director starts functioning.
### 4. Who will sign previous years' balance sheet till 31.03.2017, Mr. A and Mrs. B?
If Mr. A and Mrs. B were directors during the relevant financial years for the balance sheets up to 31st March 2017, they are responsible for signing those balance sheets.
### 5. What is the expenditure for CODS? For Y, Z Pvt. Ltd, we have to pay compounding fees of Rs. 30,000 each.
Under CFSS 2018, there are no additional fees for filing overdue documents. However, for compounding of offenses, if applicable, the compounding fee would be Rs. 30,000 each for Y and Z Pvt. Ltd.
### Appointment of Additional Director:
- **Process**: Since there are only two active directors (Mr. A and Mrs. B) in Y or Z Pvt. Ltd, the appointment of an additional director can be done through a resolution passed by the Board of Directors.
- **Effective Date**: The effective date of appointment will be the date mentioned in the resolution passed by the Board. It should be recorded accurately in the minutes of the meeting and intimated to the Registrar of Companies (ROC) as per the timelines required.
### Conclusion:
Mrs. B can indeed avail the benefit of CFSS for the companies she is associated with. She can appoint an additional director through proper board resolution, specifying the effective date of appointment. The expenditure primarily involves compounding fees for Y and Z Pvt. Ltd. Ensure compliance with all procedural requirements and maintain proper documentation for these actions. If in doubt, consulting a company secretary or legal advisor would be beneficial to ensure adherence to regulatory requirements.
### 1. Can Mrs. B avail benefit of CODS?
The Companies Fresh Start Scheme (CFSS) 2018 was intended to provide relief to disqualified directors by allowing them to file overdue documents without payment of additional fees. Since Mrs. B is a disqualified director until 31st October 2021, she can avail the benefit of CFSS for the companies she is associated with (Y and Z Pvt. Ltd).
### 2. Can Mrs. B appoint an additional Director and conduct business?
Yes, Mrs. B can appoint an additional director to the board of Y or Z Pvt. Ltd to continue conducting business operations effectively.
### 3. From which date can the additional Director be appointed?
The appointment of an additional director can be made from the date of resolution passed by the Board of Directors. This resolution should specifically authorize the appointment and mention the effective date from which the additional director starts functioning.
### 4. Who will sign previous years' balance sheet till 31.03.2017, Mr. A and Mrs. B?
If Mr. A and Mrs. B were directors during the relevant financial years for the balance sheets up to 31st March 2017, they are responsible for signing those balance sheets.
### 5. What is the expenditure for CODS? For Y, Z Pvt. Ltd, we have to pay compounding fees of Rs. 30,000 each.
Under CFSS 2018, there are no additional fees for filing overdue documents. However, for compounding of offenses, if applicable, the compounding fee would be Rs. 30,000 each for Y and Z Pvt. Ltd.
### Appointment of Additional Director:
- **Process**: Since there are only two active directors (Mr. A and Mrs. B) in Y or Z Pvt. Ltd, the appointment of an additional director can be done through a resolution passed by the Board of Directors.
- **Effective Date**: The effective date of appointment will be the date mentioned in the resolution passed by the Board. It should be recorded accurately in the minutes of the meeting and intimated to the Registrar of Companies (ROC) as per the timelines required.
### Conclusion:
Mrs. B can indeed avail the benefit of CFSS for the companies she is associated with. She can appoint an additional director through proper board resolution, specifying the effective date of appointment. The expenditure primarily involves compounding fees for Y and Z Pvt. Ltd. Ensure compliance with all procedural requirements and maintain proper documentation for these actions. If in doubt, consulting a company secretary or legal advisor would be beneficial to ensure adherence to regulatory requirements.
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