6 Feb 2018, 10:22 — 6 min read
The Ministry of Corporate Affairs (MCA) in September 2017, identified more than three lakh directors associated with the companies that had failed to file financial statements or annual returns in the MCA21 online registry for a continuous period of three financial years 2013-14 to 2015-16. They were barred from accessing the online registry and a list of such directors was published on the MCA website. As a result, there has been a spate of representations from the industry, defaulting companies and their directors, seeking an opportunity for the defaulting companies to become compliant and normalise operations.
Certain affected persons have also filed writ petitions before various High Courts seeking relief from the disqualification. With a view to give an opportunity for the non-compliant, defaulting companies to rectify the default, the Central Government has decided to introduce a Scheme namely ‘Condonation of Delay Scheme 2018’ (CODS-2018).
This is a one-time opportunity for the disqualified directors to remove their disqualifications from the companies by filing the e-CODS form along with fee of INR 30,000. Disqualified directors should make the most of this scheme and remove non-compliances relating to non-filing of financials & annual returns. Professionals such as CAs, CSs, should guide and assist directors in complying with the scheme.
This scheme would to prove to be a 'saviour' for the disqualified directors. They can save themselves from disqualification arisen from the defaulting companies.
Below mentioned are the aspects with relation to the Condonation of Delay Scheme 2018.
Applicability & validity
The scheme shall come into force with effect from 01.01.2018 and shall remain in force up to 31.03.2018 i.e. for three months
This scheme is available to all the defaulting companies other than the companies which have been stuck off or whose names have been removed from the register of companies.
A defaulting company means as company which has not filed its financials or annual returns for a continuous period of three years with MCA.
Procedure & key aspects
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Posted byRavi Haresh Kariya
EbizFiling.com is a motivated and progressive firm managed by like-minded people. It helps a variety of small, medium and large businesses to cater to all compliance requirements...
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