Company Law Settlement Scheme, 2011

The
Ministry of Corporate Affairs, in exercise of the powers under Section
611(2) and 637B (b) of the Companies Act, 1956 has introduced the
“Company Law Settlement Scheme, 2011,” vide its General Circular No. 59
/2011 dated August 05^th, 2011 condoning the delay in filing
of documents, granting immunity from prosecution and waiver of 75% of
the additional fees payable on filing of belated documents. The scheme
shall be effective from August 12^th, 2011 till October 31^st, 2011.

Benefits

1. Condoning the delay in filing statutory documents (i.e. Balance Sheets and Annual Returns) with the Registrar of Companies,;
2. Granting immunity from the prosecution on obtaining immunity certificate from the Registrar of Companies;
3. Waiver of 75% of additional fees payable for filing belated documents.

Eligibility & Applicability

Any “defaulting Company” is permitted to file belated documents, which were due for filing till June 30^th, 2011 other than companies against which action under sub-section (5) of section 560 has been initiated by the Registrar of Companies for striking off.

Defaulting Company: means a Company registered under Companies Act, 1956 and a foreign Company falling under Section 591 of the Act, which has made a default in filing of documents on the due date(s) as per the provisions of Companies Act, 1956

Scheme shall be limited to filing of the following documents pertaining to annual compliance by the companies:

1. Form 20B- For filing annual return by the companies having share capital.
2. Form 21A- For filing annual return by the companies not having share capital
3. Form 23AC & ACA- For filing Balance Sheet and Profit & Loss Account.
4. Form 66- For submission of Compliance Certificate.

Note: Though
the Scheme covers Foreign Companies also but the form No 52, which is
to be filed annually by the Foreign Company for submission of its
accounts doesnt forms part of the documents covered and therefore it
raises a question, whether foreign companies are indeed covered under
the said Scheme or not.

Withdrawal of appeal against prosecution launched for offences

If the defaulting company has filed any appeal before the competent court against any notice or complaint for violation of provisions under the Act in respect of which application is made under this scheme, then such Company before filing an application for issue of immunity certificate, withdraw the appeal filed and attached the proof of such withdrawal with the application.

Application for seeking immunity

The application for seeking immunity in respect of belated documents filed under the scheme may be made electronically in the form annexed after closure of the scheme and after the documents are taken on file or on record or approved by Registrar of Companies, as the case may be, but not after the expiry of six months from the date of closure of the scheme. No fee shall be payable on this form.