Date:15/07/2005 URL: http://www.thehindubusinessline.com/2005/07/15/stories/2005071500800700.htm

Back Minister asks cos not continuing business to use new exit scheme

Our Bureau

New Delhi , July 14

THE Minister of State for Company Affairs, Mr Prem Chand Gupta, has urged companies that are unable to do business and want their names struck off from the register of the Registrar of Companies (RoCs) to take full advantage of the Simplified Exit Scheme (SES) 2005.

"I urge all such companies to make full use of the scheme, since stringent action will be taken against the companies who have not filed the statutory returns after expiry of the scheme," the Minister said.

Speaking at the interactive session on `Reform in company law' organised by the Forum of Financial Writers, the Minister said the SES was launched to address the problems faced by companies that are unable to do business, in getting their names struck off the register. Many corporates have already taken advantage of this scheme that is ending on July 31. "I do not think there is any reason for its further extension," the Minister said. The Minister also hoped the new companies Bill would be ready and tabled in Parliament in the winter session. Talking about the ambitious MCA21, the e-governance programme, Mr Gupta said, this would help the RoCsto focus their attention on the much-neglected area of scrutiny of returns filed by the companies for ensuring compliance with the law in letter and spirit.

On the vanishing companies, the Minister said that the crusade against such entities is continuing. As a result of the measures adopted by the Ministry there has been significant reduction in the number of vanishing companies.