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The process for voluntary name strike-off by companies just got easier under the company law.
The Corporate Affairs Ministry (MCA) has eased the process for removal of names from the Register of Companies, which is maintained by the Registrar of Companies (RoCs).
It has amended rules to introduce a maximum of two resubmissions in respect of administrative defects in the filing undertaken for voluntary strike-off.
Prior to the latest amendment, if any defects or deficiencies were noticed in the application submitted by a company for its name to be ‘struck off’ from the Register of Companies, the said application was rejected and a a fresh one had to be made.
With the latest amendment, resubmissions can be made (twice in all) in case the Registrar of Companies requires any additional information or if the original form for strike-off is incomplete or defective, said company law experts.
Yashojit Mitra, Partner, Economic Laws Practice, a law firm, said the amendment is a positive step towards ‘ease of doing business’ and has the potential to reduce the number of fresh applications submitted.
Atul Pandey, Partner, Khaitan & Co, said the amendments were introduced after ROCs , while scrutinising strike-off related applications, repeatedly sought clarifications on original forms that were incomplete/ defective.
In order to ensure that applicants make proper filings in respect of strike-off related matters, the MCA has prescribed that ROCs can accept a maximum of two resubmissions, he added.
MCA said resubmissions would be allowed in case the Registrar of Companies required any additional information or if the original form was incomplete or defective.
Further, the latest MCA rule amendment also prescribes the period within which a resubmission will have to be made when a company seeks voluntary strike-off.
The amendment has clarified that any re-submission made prior to the commencement of the amendment rules i.e. June 9, 2022, will not be counted for the purposes of reckoning the maximum number of re-submissions.
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