TaxTMI 
TaxTMI 
COMPANY LAW SETTLEMENT SCHEME, 2014
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....OMPANY LAW SETTLEMENT SCHEME, 2014<br>By: - DR.MARIAPPAN GOVINDARAJAN<br>Corporate Laws / IBC / SEBI<br>Dated:- 18-8-2014<br><br>Section 92 of the Companies Act, 2013 requires a company to file annual returns. Section 137 requires that a copy of the financial statements, including all the documents which are required to be or attached to such financial statements under the Act, duly adopted at the time of Annual General Meeting of the company, shall be filed with the registrar within 30 days of the date of annual general meeting in such manner, with such fees or additional fees as may be prescribed under Section 403. Section 403(2) provides that where a company fails or commits any default to submit file, register or recor....
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....d of any document, fact or information before the expiry of the specified period the company and the officers of the company who are in default shall, without prejudice to the liability for payment of fee and additional fee, be liable for penalty or punishment provided for such failure of default. The above said documents are to be filed electronically on MCA 21. The annual accounts of the companies are treated very important in context of up-to-date Registry. The Ministry of Corporate Affairs observed a large percentage of companies have not filed their statutory documents making them liable for penalties and prosecution for non such compliance. The present Companies Act lays down a stricter regime for the de....
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....faulting companies with higher additional fees. Section 451 of the Act provides that if a company or an officer of a company commits an offence punishable other with fine or with imprisonment and where the same offence is committed for the second or subsequent occasions within a period of three years, then, that company and every officer thereof who is in default shall be punishable with twice the amount of fine for such offence in addition to any imprisonment provided for that offence. Further Section 164(2) provides that no person who is or has been a director of a company which- * has filed financial statements or annual returns for any continuous period of 3 financial years; or * has failed to repay the deposits accepted by ....
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....it or pay interest thereon or to redeem any debentures on the due date or pay interest due thereon or pay any dividend declared and such failure to pay or redeem continuous for one year or more shall be eligible to be re-appointed as a director of that company or appointed to other company for a period of 5 years from the date on which the said company fails to do so. In order to give an opportunity to the defaulted companies enabling them to make their default good by filing belated documents, the Central Government launched a scheme known as 'Company Law Settlement Scheme, 2014'. This scheme will be in operation from 15.08.2014 to 15.10.2014. This scheme gives to such companies- * immunity for prosecution; and ....
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.... * charging a reduced additional fee of 25% of the actual additional fees payable under Section 403 of the Act read with Companies (Registration Office and Fees) Rules, 2014. This scheme also gives an opportunity to inactive companies to get their companies declared as 'dormant company' as under Section 455 of the Act by filing a simple application at reduced fees. The details of this scheme are as detailed below: * A defaulted company is permitted to file belated documents which were due for filing till 30th July, 2014; * The company is to pay statutory fee along with 25% of the actual additional fee; * If a defaulted company files any appeal against any notice issued or complaint filed before the competent court....
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.... for violation of the provisions in respect of which application is made under this scheme, the applicant before filing for issue of immunity certificate, shall withdraw the appeal and furnish proof for such withdrawal; * The relevant application form CLSS 2014 may be made electronically annexing the following documents- * Proof of withdrawal of any appeal(s) against any notice issued or complaint filed before the competent court; * Details in respect of prosecution(s) pending against the company and its officers in respect of belated documents filed under the scheme which requires withdrawal by the Registrar; * Details of Director(s) declared as proclaimed offender or facing criminal case(s) for economic offences; * Optiona....
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....l document(s), if any are taken on file, or on record or approved by the Registrar of Companies as the case may be. * The designated authority shall consider the application and upon being satisfied shall grant the immunity certificate in respect of documents filed under this scheme; * After that the Registrar shall withdraw the prosecution (s) pending if any before the concerned Court (s). This scheme is not applicable to the filing of belated documents other than the following- * Form - 20B - Form for filing annual return by a company having share capital; * Form - 21A - Particulars of Annual return for the company not having share capital; * Form - 23AC, 23ACA, 23AC-XBRL and 23ACA - XBRL - Forms for filing balance....
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.... sheet and profit and loss account; * Form 66 - Form for submission of Compliance Certificate with the Registrar; * Form 23B - Form for intimation of appointment of auditors. This scheme shall not apply to the companies as detailed below: * Companies against which action for striking off the name under Section 560(5) has already been initiated by the Registrar of Companies; or * Where any application has been filed by the companies for action of striking off name from the Registrar of Companies; or * Where applications have been filed for obtaining dormant status under Section 455 of the Act; or * To vanishing companies. At the conclusion of this scheme the Registrar shall take necessary action under th....
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....e Companies Act, 1956/2013 against the companies who have not availed this scheme and are in default in filing these documents in a timely manner. ============= Document 1 CLSS-2014 [Pursuant to Company Law Settlement Scheme, 2014] Το The Registrar of Companies, Application for issue of immunity certificate under the Company Law Settlement Scheme (CLSS), 2014 Sir/Madam, I herewith make an application for issue of immunity certificate under the Company Law Settlement Scheme, 2014 and give below the following particulars, namely:- 1.(a)* Corporate identity number (CIN) (b) Global location number (GLN) of company 2.(a) Name of the company Pre-fill (b) Address of the registered office (c) *e-mail ID of the company ....
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.... (d) Date of incorporation of company 3. Details of documents filed under the Company Law Settlement Scheme, 2014 Total number of Service Request Number (SRN)(s) SRN Form number(s) Date of filing (DD/MM/YYYY) Date of event (DD/MM/YYYY) Statutory filing fees (in Rs.) Normal Fees charged under CLSS, 2014 (in Total (DD/MM/YYYY) Pre-fill Actual additional fees (in Rs.) Additional fee charged under CLSS, 2014 (in Total Fees paid (in Rs.) 4. *Whether any appeal(s) was filed against any notice issued or complaint filed before the competent court for violation of the provisions under the Act in respect of the above mentioned document(s). If yes, attach proof of withdrawal of such appeal. Yes No Not Applicable 5. *Wh....
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....ether any prosecution(s) is pending in court against the company and its officers in respect of belated documents filed under the scheme. If yes, provide details thereof as an attachment. 6. "Whether any director(s) of the company is declared as proclaimed offender or facing criminal case(s) for economic offences. If yes, provide details of such director(s) as an attachment. Attachments List of attachments Yes No Yes No 1. Proof of withdrawal of any appeal(s) against any notice issued or complaint filed before the competent court Attach 2. Details in respect of prosecution(s) pending against the company and its officers in respect of belated documents filed under the scheme which requires withdrawal by the Registrar Attach....
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.... 3. Details of director(s) declared as proclaimed offender or facing criminal case(s) for economic offences Attach Remove attachment 4. Optional attachment(s) - if any Verification Attach To the best of my knowledge and belief, the information given in this application and its attachments is correct and complete. I have been authorised by the Board of directors' resolution number to sign and submit this application. dated (DD/MM/YYYY) I am authorised by the Board of directors to sign and submit this application. The company had failed to comply with the provisions of the Act as mentioned in respect of filing of above mentioned documents. The company has withdrawn the appeals pending before any Court or Company Law Board or ....
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....Regional Director or any other adjudicating authority. To be digitally signed by *Designation * Director identification number of the director; or DIN OR PAN of the manager or CEO or CFO or Membership number of the company Secretary Modify For office use only: eForm Service request number (SRN) Check Form Digital signature of the authorising officer This e-Form is hereby approved This e-Form is hereby rejected Date of signing Prescrutiny Submit Affix filing details eForm filing date (DD/MM/YYYY) Confirm submission (DD/MM/YYYY)<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....