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Striking Off or Closure of Company
A Company
seeking exit from Registrar of Companies is possible through normal operational
of law. The provisions relating to Strike Off provide an opportunity to
the defunct companies to get their names struck off from the records of the
ROC.
Conditions
Ø A company has failed to commence its business
within one year of incorporation; or
Ø
The company is not carrying out any business or
Activity for preceding 2 financial years and has not made any application for
status of Dormant Company under Section 455 of the Act.
A Company
falling under any two of its above conditions can get their name struck-off
from the records of ROC.
A Company shall
by passing special resolution or with the consent of 75% of members in terms of
paid-up capital can file an application to the registrar. And also
the Registrar of Companies may use its suo-moto power to remove the
names of defunct companies.
Categories of
companies shall not be removed from the register of companies:-
1. Section 8 Company
2. Listed
companies
3. Companies
that have been delisted due to non-compliance of listing regulations or listing
agreement or any other statutory laws
4. Vanishing
companies
5. Companies
whose inspection or investigation is ordered and being carried out
or actions on such order are yet to be taken up by court
6. Companies
against which any prosecution for an offence is pending in any court.
7. Companies
whose application for compounding is pending before the competent authority
8. Companies,
which have accepted public deposits which are either outstanding or the company
is in default in repayment of the same
9. Companies
having charges which are pending for satisfaction.
Restriction on
making Application
An application
shall not be made if, at any time in the previous three months, the company has
1. Changed
its name or shifted its registered Office from one state to another
2. Disposal
for value of property or rights for the purpose of disposal for gain in the
normal course of trading.
3. Made
an application for the sanctioning of a compromise or arrangement.
4. Company
being wound up under Chapter XX of this Act or under the Insolvency and
Bankruptcy Code, 2016.