Ministry of Corporate Affairs, Central Government approves Condonation of Delay Scheme 2018. Subsequently, this scheme will provide an opportunity of one-time settlement to the companies whose directors got disqualified after the govt. order earlier in 2017. Accordingly, this scheme will benefit around 3 lakh disqualified directors of companies.
Central govt. penalized the directors for not filing their annual returns and other financial statements to the Registrar of Companies (RoC). The directors were disqualified from their boards after non filing of returns for the consecutive 3 years.
Latest Update – Central Govt. has extended the deadline for defaulter firms submit filing under companies law till 30 April 2018.
As per official notification, this scheme is an opportunity to defaulter companies to correct their mistakes and make them compliant. Henceforth, all those defaulter directors of companies whose name has not been struct off from ROC Companies Register can apply for their records rectification. Central govt. will start implementing this scheme from 1 January 2018 for a total duration of 3 months.
Condonation of Delay Scheme 2018
The important features and details of this scheme are as follows:-
- All the defaulter companies can submit their due documents (till 30 June 2017).
- Subsequently, govt. is going to charge Rs. 30,000 for condoning this delay in filing the documents.
- Under this scheme, central govt. will also remove any pending cases on defaulters companies.
- Earlier in the month of September 2017, ROCs under Ministry of Corporate Affairs had disqualified directors for non submission of balance sheets, Profit / Loss statements and annual returns.
- Accordingly, the directors were disqualified to sit in the board meetings for 5 years.
- In addition to this, the Director Identification Number (DIN) of Directors of Companies was suspended.
Only the directors who possess an active DIN can become board members of companies under the Companies Act, 2013. Accordingly after the suspension of DIN, director can not file returns or submit documents with Registrar of Companies (ROCs).
For this reason, Small and Medium Enterprises faces severe problem as most of these companies have disqualified directors. Furthermore, central govt. also states that all the companies who are not going to avail this scheme will get their DIN deactivated permanently.