Close to 13,000 companies have taken recourse to the ‘Easy Exit Scheme, 2011' floated by the Ministry of Corporate Affairs, said Mr Murli Deora, Minister for Corporate Affairs. The scheme, under Section 560 of the Companies Act, was introduced to allow defunct companies to remove their names from the Register of Companies. It was operational from January 1 to 31, 2011, and has been extended till April 30.

Mr Deora also said loss-making unlisted companies will no longer need Government's nod to fix managerial salaries. The Schedule XIII of the Companies Act 1956 is being amended to provide for it.

So long as the conditions specified in Schedule XIII, including “special resolution of shareholders and absence of default on payment to creditors”, are fulfilled, Government's approval will not be required, he said.

“The primary purpose of regulations over managerial remuneration is to protect stakeholders, particularly shareholders and creditors,” he said.

The change is being brought in as the Ministry does not have enough people to deal with applications by unlisted companies, which are similar to private limited companies, according to a release.

Companies Bill

Addressing the press as the Minister for Corporate Affairs for the first time, Mr Deora said his priority would be to present the Companies Bill 2009 in the budget session of Parliament.

“We will meet all stakeholders next week to draft the final Bill before it is taken up by Parliament,” he said.

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