The two schemes recently launched by the Ministry of Corporate Affairs, viz., 'Company Law Settlement Scheme, 2010' (CLSS 2010) and 'Easy Exit Scheme, 2010' (EES 2010) are drawing positive response from the corporate sector. The two Schemes were launched on 30.5.2010 and will be available till 31.08.2010. An electronic workflow has been established in the system to process the cases received under the two Schemes in a time bound manner.

'CLSS 2010' gives opportunity to the defaulting companies to enable them to make their default good by filing belated documents and to become regularly compliant in future with payment of normal fee and 25% of additional fee and immunity from prosecution. Under it the defaulting companies have filed 67,430 documents and the Government has collected a revenue amounting to Rs. 33.22 crore till date.

'EES 2010' gives opportunity to the defunct companies to get their names struck off from the register by adopting simplified procedure under section 560 of the Companies Act, 1956. Under it 500 applications have been received for striking off the name of companies till date.

Also see:

Easy Exit Scheme 2010 & Company Law Settlement Scheme, 2010

Company law settlement offers defaulting companies immunity and compliance pathway; easy exit simplifies striking off defunct companies. The Company Law Settlement Scheme, 2010 allows defaulting companies to cure non compliance by filing belated documents, paying normal and additional fees, and receiving immunity from prosecution processed through an electronic workflow. The Easy Exit Scheme, 2010 provides a simplified section 560 procedure to strike defunct companies from the register; both schemes operate for a limited period and have attracted multiple applications.