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Strike Off vs Winding Up

SkDash (CS (Member) CWA (Final)) (909 Points)

27 April 2011

Can anybody advise on the followings:-

1. Can we apply to the Registrar u/s 560 to strike off a newly incorporated co which got incorporated in june 2010 ? What is the meaning of defunct co u/s 560 ? Is there any min time gap for a co to lapse to become a defunct co ?

2. After getting the positive order from RoC for strike off the name of the Co (lets say), shall we do the procedure of voluntary winding up or the striking off itself will dissolve the co and the matter will be closed.

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SANTOSH SHAH (Company Secretary) (754 Points)
Replied 28 April 2011

Originally posted by : Santosh
	Can anybody advise on the followings:- 1. Can we apply to the Registrar u/s 560 to strike off a newly incorporated co which got incorporated in june 2010 ? What is the meaning of defunct co u/s 560 ? Is there any min time gap for a co to lapse to become a defunct co ? 2. After getting the positive order from RoC for strike off the name of the Co (lets say), shall we do the procedure of voluntary winding up or the striking off itself will dissolve the co and the matter will be closed.

Hi Santosh

With reference to EES 2011, 'Defunct Company' would be those which are incorporated before

April 2008 and not carrying on any business after April 2008 .

1. So new company formed in June 2010 will not be fall in the above meaning.

2. Voluntary Winding up is not required if the company name can be striken off by ROC.

Both are legal ways of closing a company and Winding Up is a long procedure. So Company

can make use of EES if it matches the criteria and go for strike off as against Winding Up.

EES gives company easy way of exiting rather than going through cumbersome procedures of

winding up.

Other Views / Experts views solicted

regards

Santosh Shah

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SkDash (CS (Member) CWA (Final)) (909 Points)
Replied 28 April 2011

Shah

Meaning will be different for diff scheme, Acts, Rules and Regulations. So defaunct co as defined in EES-11 ( as per me, there is no specific definition as said by you, this is referred) will not be applicable to meaning for section 560. Power u/s 560 is a descrinary power of the RoC and a co can request RoC to exercise that power (though no such things are anywhere prescribed). Since a new co, it can not apply thru EES, but it is free to ask RoC to exercise its power u/s 560.

2. I am still in doubt whether striking off will dissolve the Co. Partially agree with you.

SANTOSH SHAH (Company Secretary) (754 Points)
Replied 28 April 2011

Originally posted by : Santosh
	Shah Meaning will be different for diff scheme, Acts, Rules and Regulations. So defaunct co as defined in EES-11 ( as per me, there is no specific definition as said by you, this is referred) will not be applicable to meaning for section 560. Power u/s 560 is a descrinary power of the RoC and a co can request RoC to exercise that power (though no such things are anywhere prescribed). Since a new co, it can not apply thru EES, but it is free to ask RoC to exercise its power u/s 560. 2. I am still in doubt whether striking off will dissolve the Co. Partially agree with you.