The Company Law Settlement Scheme 2014 (CLSS-2014) announced by the Corporate Affairs Ministry will benefit around 8,000 companies in Kerala.

CLSS-2014 is aimed at granting a transitional period to defaulting companies to file the pending forms with reduced fees and without the threat of prosecution.

Pending cases

VE Josekutty, ROC in-charge, Kerala and Lakshadweep, said that about 800 cases are pending in courts against companies in Kerala. The cases will be withdrawn if the companies complied with the new scheme, he said.

CLSS-2014 will remain in force up to October 15 this year.

A person who is or has been director of a company, public or private, which has not filed financial statements or annual returns for a continuous period of three financial years, is ineligible to be appointed as director of any company.

CLSS-2014 is a one-time opportunity given to companies for condoning the delay in filing of statutory forms and gaining immunity from prosecution.

Punitive steps

Josekutty said the ROC would take necessary action under the Companies Act against the firms that do not take advantage of the scheme. Directors of such companies will be disqualified from appointment in any other company as director.

Besides, the defaulting companies and their officials will be liable for hefty penalties. ROC has the power to categorise such companies as ‘dormant,’ denying them the facility for e-filing of documents on the ministry’s portal, Josekutty added.

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