EASY EXIT SCHEME 2010
Highlights and FAQs
This is a scheme provided by the Ministry of Corporate Affairs to the bona fide companies who are either not doing any business on and from 1st April 2008 or have not been able to start any business activity at all and there being no asset or liability want an exit route with minimum hassle.
The Scheme will be in effect for ?
30/05/2010 to 31/08/2010
Which are the eligible companies ?
Defunct companies, that is, companies not carrying any business or operation on or from 01st April, 2008 and includes such companies, which have not raised their share capital to the required minimum of Rs 1 Lac and Rs 5 Lac in cases of private and public companies respectively.
Government companies would be required to submit NOC from the respective ministry or department of the government
Which are the Ineligible entities ?
(a) Listed companies
(b) Companies registered under section 25 of the Companies Act, 1956
(c) Vanishing companies
(d) Companies where inspection or investigation is ordered and being carried out or yet to be taken up or where completed prosecutions arising out of such inspection or investigation are pending in the court;
(e) Companies where order under section 234 of the Companies Act, 1956 has been issued by the Registrar and reply thereto is pending or where prosecution if any, is pending in the court
(f) Companies against which prosecution for a non compoundable offence is pending in court
(g) Companies accepted public deposits which are either outstanding or the company is in default in repayment of the same
(h) Company having secured loan
(i) Company having management dispute
(j) Company in respect of which filing of documents have been stayed by court or Company Law Board(CLB) or Central Government or any other competent authority
(k) Company having dues towards income tax or sales tax or central excise or banks and financial institutions or any other Central Government or State Government Departments or authorities or any local authorities.
How to apply for this scheme ?
Form EES has to be filled up and filed electronically. The company representative can sign the form digitally. In case digital signature by the company representative is not possible, it may be signed manually and a physical copy of the manually signed form EES should be attached to the electronic form EES before filing.
Is there any pre certification needed ?
The Form EES must be pre certified by a PCS or PCA or PICWA.
Is there any attachments needed ?
( 1 ) Affidavit by each director sworn before a 1st Class Judicial Magistrate or Executive Magistrate, Oath Commissioner or Notary to the effect that
the Company did not carry any business since incorporation or
carried business up to ____________ and thereafter has not been carrying any business on or after 01/04/2008
( 2 ) Indemnity Bond by each director individually or collectively, duly notarized that any loss, claim, liability on the company shall be met in full by the directors individually or collectively, even after the name of the company is struck off.
( 3 ) Statement of account On a date not prior to one month from the date of filing the form EES duly certified by the statutory auditor or by a PCA
( 4 ) Board Resolution authorizing the directors to file the application EES
( 5 ) NOC in case of government companies
( 6 ) PAN / Passport of directors duly notarized
( 7 ) Proof of present address and proof of permanent address, duly notarized
Highlights and FAQs
This is a scheme provided by the Ministry of Corporate Affairs to the bona fide companies who are either not doing any business on and from 1st April 2008 or have not been able to start any business activity at all and there being no asset or liability want an exit route with minimum hassle.
The Scheme will be in effect for ?
30/05/2010 to 31/08/2010
Which are the eligible companies ?
Defunct companies, that is, companies not carrying any business or operation on or from 01st April, 2008 and includes such companies, which have not raised their share capital to the required minimum of Rs 1 Lac and Rs 5 Lac in cases of private and public companies respectively.
Government companies would be required to submit NOC from the respective ministry or department of the government
Which are the Ineligible entities ?
(a) Listed companies
(b) Companies registered under section 25 of the Companies Act, 1956
(c) Vanishing companies
(d) Companies where inspection or investigation is ordered and being carried out or yet to be taken up or where completed prosecutions arising out of such inspection or investigation are pending in the court;
(e) Companies where order under section 234 of the Companies Act, 1956 has been issued by the Registrar and reply thereto is pending or where prosecution if any, is pending in the court
(f) Companies against which prosecution for a non compoundable offence is pending in court
(g) Companies accepted public deposits which are either outstanding or the company is in default in repayment of the same
(h) Company having secured loan
(i) Company having management dispute
(j) Company in respect of which filing of documents have been stayed by court or Company Law Board(CLB) or Central Government or any other competent authority
(k) Company having dues towards income tax or sales tax or central excise or banks and financial institutions or any other Central Government or State Government Departments or authorities or any local authorities.
How to apply for this scheme ?
Form EES has to be filled up and filed electronically. The company representative can sign the form digitally. In case digital signature by the company representative is not possible, it may be signed manually and a physical copy of the manually signed form EES should be attached to the electronic form EES before filing.
Is there any pre certification needed ?
The Form EES must be pre certified by a PCS or PCA or PICWA.
Is there any attachments needed ?
( 1 ) Affidavit by each director sworn before a 1st Class Judicial Magistrate or Executive Magistrate, Oath Commissioner or Notary to the effect that
the Company did not carry any business since incorporation or
carried business up to ____________ and thereafter has not been carrying any business on or after 01/04/2008
( 2 ) Indemnity Bond by each director individually or collectively, duly notarized that any loss, claim, liability on the company shall be met in full by the directors individually or collectively, even after the name of the company is struck off.
( 3 ) Statement of account On a date not prior to one month from the date of filing the form EES duly certified by the statutory auditor or by a PCA
( 4 ) Board Resolution authorizing the directors to file the application EES
( 5 ) NOC in case of government companies
( 6 ) PAN / Passport of directors duly notarized
( 7 ) Proof of present address and proof of permanent address, duly notarized
Has any format been prescribed ?
( 1 ) Annexure A for affidavit
( 2 ) Annexure B for Indemnity and
( 3 ) Annexure C for the Statement of Account
What would be the process after filing the Form EES ?
The application having found in order, the ROC will send a notice to the company under section 560, giving 30 days to raise any cause to the contrary, else the name will be struck off.
The names of the applicant companies will be put on the mca website on daily basis, for giving a chance to the stakeholders or any other interested party to raise objections.
Where there are other regulators like RBI, SEBI etc., the ROC will intimate them on weekly basis of the application received
The specified period being over, unless any contrary reason is found, the name of the company will be struck off the register and will be sent for publication in the official gazette.
{ This write up on Easy Exit Scheme 2010 Highlights and FAQs is an exclusive work of ANJAN KUMAR ROY, Fellow of the Institute of Company Secretaries of India, he is the author of this write up and he has copy write of this write up. Any imitation or copying of this write up shall constitute violation of copy write of the author }
ANJAN KUMAR ROY
FCS
Vice Chairman, EIRC of ICSI
ANJAN KUMAR ROY & CO.
Company Secretaries
5/1 Bondel Road. Kolkata 700019
09830201949 ( M )
( 1 ) Annexure A for affidavit
( 2 ) Annexure B for Indemnity and
( 3 ) Annexure C for the Statement of Account
What would be the process after filing the Form EES ?
The application having found in order, the ROC will send a notice to the company under section 560, giving 30 days to raise any cause to the contrary, else the name will be struck off.
The names of the applicant companies will be put on the mca website on daily basis, for giving a chance to the stakeholders or any other interested party to raise objections.
Where there are other regulators like RBI, SEBI etc., the ROC will intimate them on weekly basis of the application received
The specified period being over, unless any contrary reason is found, the name of the company will be struck off the register and will be sent for publication in the official gazette.
{ This write up on Easy Exit Scheme 2010 Highlights and FAQs is an exclusive work of ANJAN KUMAR ROY, Fellow of the Institute of Company Secretaries of India, he is the author of this write up and he has copy write of this write up. Any imitation or copying of this write up shall constitute violation of copy write of the author }
ANJAN KUMAR ROY
FCS
Vice Chairman, EIRC of ICSI
ANJAN KUMAR ROY & CO.
Company Secretaries
5/1 Bondel Road. Kolkata 700019
09830201949 ( M )
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