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.
| Originally posted by : Santosh | ||
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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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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
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.
| Originally posted by : Santosh | ||
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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. |
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Hello Mr Santosh
My answer was with reference to EES 2011 as such exit was under section 560 .
The meaning is defunct is very much in the circular No, 06 DT 03/12/2010, and the same is applicable for
extended scheme upto 30th April 2011.
Please find attached the Circular for your reference.
With reference to Section 560 of Companies Act, the registrar sends notice to the company & inquiring
if company is continuing any business or not.
But that does not mean company voluntarily cannot proceed to ROC on striking off.
In my view, as far as an application is made to ROC, and convinced on reasonable grounds, the name of
the company can be striken off.
But Restoration period of Strike off company is 20 Yrs. So if you see no issues from your members / creditors
in terms of strike off , then this option is better instead of winding up.
Other views solcited
regards
Santosh Shah
CAclubindia
