Change in the status of the company
Avinash Soni
(Querist) 10 September 2011
This query is : Resolved
How we can Active the Status of Strikken off Company?
S.KARUNAMOORTHY
(Expert) 10 September 2011
be clear about your question....
Guest
(Expert) 10 September 2011
What do you mean by strikken off, whether defunct, dissolved, declared sick or delisted?
Shailesh Kr. Shah
(Expert) 10 September 2011
proceed u/s 560(6) of the Companies Act,1956.
Avinash Soni
(Querist) 10 September 2011
Company is under the process of Strike off.
A V Vishal
(Expert) 10 September 2011
Once the name of the company is struck off, you cannot make it active, striking off is declaring the company dead.
Ganesh Chavan
(Expert) 10 September 2011
I agree with experts please clear your question.
prabhakar singh
(Expert) 10 September 2011
I agree with Mr.Tom ,with out facts one can simply guess.
Guest
(Expert) 10 September 2011
Unless you give reasons for the strike off of the company, the experts may probably not be in a position to give you appropriate solution.
However, the policy as regards to the striking off the defunct company is adopted on the following analogy:
"The policy which is followed with regard to weeding out the difunct companies is that where it appears from the latest available balance sheet of a defunct company that it has adequate realizable assets, steps are taken to take the company into compulsory liquidation. But where the latest available balance sheet shows that the company has no assets or has such assets as would not be sufficient to meet the cost of liquidation, steps are taken to strike their name off the register under section 560."
(Extract from the Fourth Annual Report on the Working and Administration of the Companies Act, 1956-Year ended 31st March 1960)
Shailesh Kr. Shah
(Expert) 10 September 2011
I humbly disagree with Mr. A.V. Vishal sir that "Once the name of the company is struck off, you cannot make it active, striking off is declaring the company dead."
As per Section 560(6) says that
"If a company, or any member or creditor thereof, feels aggrieved by the company having been struck off the register, the Tribunal, on an application made by the company, member or creditor before the expiry of twenty years from the publication in the Official Gazette of the notice aforesaid, may, if satisfied that the company was, at the time of the striking off, carrying on business or in operation or otherwise that it is just that the company be restored to the register, order the name of the company to be restored to the register; and the Tribunal may, by the order, give such directions and make such provisions as seem just for placing the company and all other persons in the same position as nearly as may be as if the name of the company had not been struck off.
Shailesh Kr. Shah
(Expert) 10 September 2011
Recently, Ministry of Corporate Affairs issues guidelines for Fast Track Exit mode for defunct companies under
section 560 vide General Circular No. 36/2011
F. No. 2/3/2011-CL V.
Shailesh Kr. Shah
(Expert) 10 September 2011
Mr. Avinash Soni
you have to reply of notice of Registrar stating that the company is carrying on business or in operation within stipulated time as per Section 560 of the Companies Act, 1956.
Shailesh Kr. Shah
(Expert) 10 September 2011
Extract of Section 560
Power of Registrar to strike defunct company off register.——
(1) Where the Registrar has reasonable cause to believe that a company is not carrying on business or in operation, he shall send to the company by post a letter inquiring whether the company is carrying on business or in operation,he shall send to the company by post a letter inquiring whether the company is carrying on business or in operation.
(2) If the Registrar does not within one month of sending the letter receive any answer thereto, he shall, within fourteen days after the expiry of the month, send to the company by post a registered letter referring to the first letter, and stating that no answer thereto has been received and that, if an answer is not received to the second letter within one month from the date thereof, a notice will be published in the Official Gazette with a view to striking the name of the company off the register.
(3) If the Registrar either receives an answer from the company to the effect that it is not carrying on business or in operation, or does not within one month after sending the second letter receive any answer, he may publish in the Official Gazette, and send to the company by registered post, a notice that, at the expiration of three months from the date of that notice, the name of the company mentioned therein will, unless cause is shown to the contrary, be struck off the register and the company will be dissolved.
(4) If, in any case where a company is being wound up, the Registrar has reasonable cause to believe either that no liquidator is acting, or that the affairs of the company have been completely wound up, and any returns required to be made by the liquidator have not been made for a period of six consecutive months, the Registrar shall publish in the Official Gazette and send to the company or the liquidator, if any, a like notice as is provided in sub-section (3).
(5) At the expiry of the time mentioned in the notice referred to in sub-section (3) or (4), the Registrar may, unless cause to the contrary is previously shown by the company, strike its name off the register, and shall publish notice thereof in the Official Gazette; and on the publication in the Official Gazette of this notice, the company shall stand dissolved:
Provided that—
(a) the liability, if any, of every director,1[***] manager or other officer who was exercising any power of management, and of every member of the company, shall continue and may be enforced as if the company had not been dissolved; and
(b) nothing in this sub-section shall affect the power of the Court to wind up a company the name of which has been struck off the register.
(6) If a company, or any member or creditor thereof, feels aggrieved by the company having been struck off the register, the 2[Tribunal], on an application made by the company, member or creditor before the expiry of twenty years from the publication in the Official Gazette of the notice aforesaid, may, if satisfied that the company was, at the time of the striking off, carrying on business or in operation or otherwise that it is just that the company be restored to the register, order the name of the company to be restored to the register; and the 2[Tribunal] may, by the order, give such directions and make such provisions as seem just for placing the company and all other persons in the same position as nearly as may be as if the name of the company had not been struck off.
(7) Upon a certified copy of the order under sub-section (6) being delivered to the Registrar for registration, the company shall be deemed to have continued in existence as if its name had not been struck off.
(8) A letter or notice to be sent under this section to a company may be addressed to the company at its registered office, or if no office has been registered, to the care of some director, 1[***] manager or other officer of the company or if there is no director, 3[***] manager or officer of the company whose name and address are known to the Registrar, may be sent to each of the persons who subscribed the memorandum, addressed to him at the address mentioned in the memorandum.
(9) A notice to be sent under this section to a liquidator may be addressed to the liquidator at his last known place of business.
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1. The words “the managing agent, secretaries and treasurers,” omitted by Act 53 of 2000, sec. 212 (w.e.f. 13-12-2000).
2. Subs. by Act 11 of 2003, sec. 114, for “Court”.
3. The words “managing agent, secretaries and treasurers,” omitted by Act 53 of 2000, sec. 212 (w.e.f. 13-12-2000).
Guest
(Expert) 10 September 2011
Dear Avinash,
Mr. Shailesh Kr. Shah has provided the full text of Sec 560. Now better respond to the notice and show the evidence to the Registrar, if the company is already doing business. The reason for decision to strike off would be due to non-furnishing of the prescribed returns to the ROC.
M/s. Y-not legal services
(Expert) 10 September 2011
