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DCA withdraws 2 departmental circulars

Our Bureau

NEW DELHI, Sept. 13

THE Department of Company Affairs (DCA) has decided that the two departmental circulars dated February 17, 1987 and February 19, 1991, -- regarding removing the names of companies from the register of companies -- are not appropriate and, theref ore, have been withdrawn and superceded till further orders.

In view of the ongoing Company Law Settlement Scheme - 2000 (CLSS-2000), some of the companies which have availed of the scheme by paying one-time fee and filing necessary documents such as balance-sheet and annual returns, as indicated in the scheme, ha ve approached the Registrar of Companies (RoCs) for deletion of their names from the registers taking advantage of circulars issued by the DCA on February 17, 1987 and February 19, 1991 regarding striking off the names.

In this connection, DCA clarified that the companies which had approached the RoCs, however, had not filed all the annual returns and balance-sheets.

``It is quite clear that under Section 560 of the Companies Act, 1956, even in the case of companies which come for striking off their names under that Section, such companies are expected to file all the balance-sheets and profit and loss accounts for a ll the defaulting years and not only the latest balance-sheet,'' according to an official release.

DCA further clarified that it was necessary to ascertain whether the applicant seeking sanction under Section 560 of the Act had met all the obligations to depositors, banks and financial institutions from whom it had borrowed the money and paid taxes an d other Government and statutory dues.

Meanwhile, defaulting companies, which had filed all the necessary documents under the CLSS-2000 and were desirous of getting the names struck off from the register of companies, can now approach the respective RoCs under Section 560 of the Act. The depa rtment is finalising detailed guidelines to process all these cases on a fast track.