05 June 2012
hi, The fast-track exit mode cannot be extended to several types of company. These include:
1)listed companies; 2) companies that have been de-listed due to non-compliance with a listing agreement or any other statutory laws; 3)companies registered under Section 25 of the Companies Act 1956; 4)'vanishing' companies - that is, companies registered under the act and listed with the stock exchange that have failed to file their returns with the registrar and the stock exchange for a consecutive period of two years and do not maintain their registered office at the address notified, and none of whose directors are traceable; 5) companies where inspections or investigations are underway or are yet to be carried out, or where completed prosecutions arising out of such inspections or investigations are pending in the court; 6)companies for which an order under Section 234 of the act has been issued by the registrar and a reply thereto is pending, or where prosecution is pending in the court; 7)companies against which prosecution for a non-compoundable offence is pending in court; 8)companies that have accepted public deposits which are outstanding or that are in default in repayment of the same; 9) companies with secured loans; 10)companies with management disputes; 11)companies for which the filing of documents has been stayed by a court, a company law board, central government or any other competent authority; or 12)companies with dues owing for income or sales tax, or to central excise, banks or financial institutions, any other central or state government department or authority or any local authority.
Under the fast-track scheme, a 'defunct company' is defined as one that:
i) has no assets or liabilities; ii) has not commenced any business activity or operations since incorporation; or iii)did not carry out any business activity or operations in the year before that in which it applies under the fast-track scheme.
Further, any defunct company that has active status or is identified as dormant by the ministry may apply to have its name struck off from the Register of Companies. Defunct government companies must submit a 'no-objection certificate', as issued by the administrative ministry or department concerned or by the state government, along with the application for striking off.
CAclubindia
