Company Law Settlement Scheme (CLSS 2014): A great chance for companies to comply

Business

oi-Sunil

By Sunil Fernandes

Published: Monday, August 25, 2014, 10:22 [IST]

The Companies Act, 2013 had prescribed very strict rules for non-compliance and stricter penalties for companies defaulting in filing the prescribed forms with the registrar. However, many companies had sought more time and relief for compliance. Now, the company Law Settlement Scheme (CLSS 2014) provides just that in the form of more time and immunity.

It is for defaulting companies and their directors who have failed to file their annual reports, financial statements and related documents. Here are some salient features of the CLSS 2014.

1) The scheme is available only to companies that have defaulted in compliance.

2) The Scheme is only available for annual filing documents. These include:

a) Form for filing annual returns by companies having share capital.

b) Form for filing balance sheet and profit and loss account.

c) Form for filing compliance certificate.

d) Form for information on auditors.

3) A nominal fee has to be paid for filing the forms.

4) The scheme is open for operation from Aug 15, 2014 to Oct 15, 2014.

5) Availing the scheme will prevent companies from prosecution and other legal actions.

6) In case of defaulting companies which avail of this Scheme and file all belated documents, the directors of such companies will not be disqualified to be appointed as directors.

7) The designated authority shall consider the application and on satisfaction shall grant the immunity certificate in respect of documents filed under this scheme.

GoodReturns.in