As such, Ministry of Corporate Affairs has not permitted for exit of section 25 companies under various exit schemes under section 560 of the Act announced by it from time to time and received various representation for striking off the names of section 25 Companies. In the background of above provisions, the Ministry of Corporate Affairs is considering to prescribe guidelines for strike off name under 560 of the Companies Act, 1956 for section 25 companies.
A section 25 Company may apply to Registrar of Companies in e-form (to be prescribed) for strike off name under 560 of the Companies Act, 1956 after satisfying certain conditions as under:-
(a) The section 25 company should have passed a resolution in general meeting to apply Registrar of Companies to strike off name under 560 of the Companies Act, 1956 which should have been approved by all members/shareholders of the company.
(b) The section 25 company has not commenced any activity or operation since its incorporation or stopped activities for more than last 03 years.
(c) The company has not received any donation, grants or contribution etc., other than its members.
(d) Where the company has obtained any special status from any authority such as Income Tax, Commissioner of Charity or any organization or Department of Central Government, State Government, Municipal Body or any recognized authority then a “No Objection Certificate” has to be obtained from the
concerned authority.
(e) The existing assets, if any has to be transferred to a similar object company (section 25 company) before applying to Registrar of Companies for strike off the name under section 560 of the Act.
(f) The company should have filed its all upto date Balance Sheets and Annual Returns and latest Balance Sheet should not have any Assets or Liabilities.
(g) The Directors have to file an affidavit and indemnity as required under present exit guidelines and confirming above compliances/ status.
(h) A certificate from practicing Chartered Accountants/ Company Secretary/ Cost Accountant certifying the above status / compliances by the company.
The above proposed guidelines and furnish for your comments/recommendations to the Ministry by 15th July, 2011 by e-mail on following e-mail addresses.
monika.gupta @ mca.gov.in
kamna.sharma @ mca.gov.in
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