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Easy exit scheme for defunct companies extended till 30 April news
04 February 2011

The ministry of corporate affairs had extended the exit scheme for defunct companies to get their names struck from the register of companies by a further three months.

The 'Easy Exit Scheme, introduced under Section 560 of the Companies Act, 1956 for the period 1 January 2011 to 31 January 2011, has now been extended for another three months, ie, up to 30 April 2011, a government statement said today.

The scheme does not inter-alia cover listed companies, delisted companies, section 25 companies, vanishing companies, companies under inspection/investigation, companies against which prosecution for a non-compoundable offence is pending in court, companies having outstanding public deposits or secured loan or management dispute or dues towards banks and financial institutions or any other government departments etc and companies in respect of which filing of documents have been stayed by court or CLB or the central government or any other competent authority, the release said.

Any defunct company desirous of getting its name struck off the register under Section 560 of the Companies Act, 1956 should make an application without any fee in Form EES, 2011 electronically on the portal of the ministry of corporate affairs, (namely certified by a chartered accountant or company secretary or cost accountant along with an affidavit, an indemnity bond and a statement of account duly certified by a statutory auditor or chartered accountant.

Companies availing benefit under the scheme in time will escape prosecution and other legal action.

After the closure of the scheme, the ministry of corporate affairs would take penal action against the directors of the defaulting companies who have not taken steps for de-registration of the company.

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Easy exit scheme for defunct companies extended till 30 April