TaxTMI 
TaxTMI 
Simplification of Procedure for Removal of Name of Defunct Companies.
X X X X Extracts X X X X
X X X X Extracts X X X X
....nfirming that the company has no assets and liabilities and they have no intention to carry on the business and undertaking that they would be personally liable for claims arising in future. 2. The Department subsequently amended Section 3 which came into force w.e.f. 13.12.2000, requiring private companies to increase their paid up capital to Rs.1 lakhs and public limited companies to Rs.5 lakhs. Sub-section (5) to Section 3 further provides that where the companies fail to enhance their paid up capital in accordance with sub-clause (3) & (4) to Section 3, they will be deemed to be defunct companies within the meaning of Section 560 and their name shall be strike off from the register by the Registrar. 3. The following data available with the Department reveal that the number of companies which fail to increase their capital by the cut off date of 12.12.2002 pursuant to sub-section (3) & (4) to section 3 are around 1.70 lakhs as against the total number of companies of 5.89 lakhs. Region Default Total No. of Companies registered as on 31.3.2002 Percentage Western Region 39681 184723 21.48% Eastern Region 52819 94441 55.93% Souther....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... A company must apply to the Registrar in the form prescribed (Annexure 'A') along with a fee of Rs.2,000/- (ii) The applicant company must give the audited accounts for the year ending March, 2002, if applying before 31st March, 2003, and for the year ending March, 2003, if applying thereafter. The audited accounts should show no assets and no liabilities. (iii) The application should be accompanied by an affidavit of at least two directors, sworn before a Magistrate or an Executive Magistrate (not a notary), including that of a managing or whole-time director, if there is one, to the effect that the company has not carried on any business and has no assets or liabilities. Draft enclosed as Annexure 'B'. (iv) The application should further be accompanied by an indemnity bond, duly notarized, from at least two directors, including managing or whole-time director, if there is one, to the effect that should there be any liabilities on the company, such liabilities will be met in full by them, even after the name of the company is struck off the register of the companies. Draft is enclosed as Annexure ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me of our company off the Register u/s 560 of the Companies Act, 1956, if there is a deadlock of having one member in the Board due to demise of other directors, even a single alive director may constitute the board as per Regulation 75 of Table A. (2) I/We furnish the following details and documents for considering the application. (i) Balance Sheet and Profit and Loss Accounts for the year ending _____ showing no assets and liabilities. (ii) An affidavit as per Annexure B of the General Circular No.17/78/2001-CL.V dated 25.3.2003 of D/o Company Affairs. (iii) An indemnity bond as per Annexure C of the General Circular No.17/78/2001-CL.V dated 25.3.2003 of D/o Company Affairs. (iv) Demand Draft/Pay Order/Banker's Cheque No. _______ dated________ payable at _________. (3) Now, therefore, the undersigned request you to take action to strike off the name of the company from the register. Yours faithfully, Names and addresses of applicants (directors) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ompanies Act, 1956, in the meeting of Directors held on.......... 5. As on date the Company is not having any dues towards Income Tax / Sales Tax / Central Excise/ Banks and Financial Institutions or any other Central or State Government Departments / Authorities or any local authorities. 6. That an application is hereby filed for action under section 560 of the Companies Act, 1956, before the Registrar of Companies with necessary fees and required balance sheet. 7. In case of any loss(es) to any person or any valid claim from any person, if any, arising out of the striking off the name of the Company from the Register of Companies, by the Registrar of Companies, ___________, we the Directors of the Company jointly and severally, undertake to indemnity any person for any such losses and the indemnity bond to this effect is enclosed. We solemnly affirm that this declaration is true to the best of our knowledge and belief and that it conceals nothing and that no part of it is false. Place: &nb....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (b) to indemnify any person for any such losses that may arise pursuant to striking off the name of the Company. (c) to settle all lawful claims and liabilities which have not come to our notice at this stage, even after the name of the Company has been struck off in terms of Section 560 of the Companies Act, 1956. Place: Signature: 1._______________ 2._______________ Date: &nb....