Company Law Settlement Scheme 2014

The Central Government issued the Company Law Settlement Scheme 2014 [CLSS-2014] in exercise of power conferred under Section 403 and 460 of the Companies Act, 2014.

Scheme aims to support companies to complete annual filing or got declare themselves dormant.

The Scheme shall be in force from 15^th August 2014 to 15^th October 2014. Under the scheme any

defaulting company may file documents which were due for filing till 30^th June 2014. The defaulting company shall pay statutory filing fees along with additional fees of 25% of the actual additional fee payable.

The application for seeking immunity in respect of belated documents filed under the Scheme may be made electronically in the e – form CLSS – 2014, after the documents are taken on file or on record or approved by the Registrar. The e – form CLSS – 2014 may be filed within three month of closure of the scheme. There shall bot be any fee payable on this form.

This scheme shall apply for following forms only:

1. Form 20B
2. Form 21A
3. Form 23AC, 23ACA, 23AC-XBRL and 23ACA-XBRL
4. From 66
5. From23B

After granting the immunity, the Registrar concerned shall withdraw the prosecution(s) pending if any before the concerned court.

The defaulting inactive companies, while filing due documents under CLSS – 2014 can, simultaneously, either:

1. Apply to get themselves declared as Dormant Company under Section 455 of the Companies Act, 2013 by filling e – form MSC – 1 at 25% of the fee for the said form; or
2. Apply for sriking off the name of the company by filing e – form FTE at 25% of the fee payable on from FTE.

In case of defaulting companies which avail of this scheme and file all belated documents, the provisions of Section 164(2)(a)of the Companies Act, 2013 shall apply only for the prospective defaults, if any by such companies.

At the conclusion of the Scheme, the Registrar shall take necessary action under the 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.