FAST TRACK EXIT (FTE) FOR DEFUNCT COMPANIES

FAST TRACK EXIT (FTE) FOR DEFUNCT COMPANIES 
 (Sec 560 of 1956 Act now Sec 248 of 2013 Act)

CONDITIONS FOR FTE

The defunct company should have “Nil” Assets & Liabilities and has not commenced any business activity or operation since incorporation; or is not carrying over any business activity or operation for last one year before making application and Company which has “Active” status or identified as “Dormant” by the MCA

COMPANIES NOT ELIGIBLE FOR FTE

Listed Companies/ De-listed Companies/Section 8 Co/ Vanishing Companies/ Companies under Inspection/Investigation pending in any Court/ Companies where order under Section 234 has been issued and reply thereto or prosecution, if any, is pending in the court/ Companies against which prosecution for a non-compoundable offence is pending in court/Companies which have accepted public deposits and has made defaults in repayment of the same/Companies having secured loans/Companies having management disputes/Companies whose filing of documents has been stayed by Court or CLB or CG / Companies having dues to Taxes, banks and FI or CG or SG or any local authorities

HOW TO APPLY FOR FTE?

The application shall be made in Form FTE accompanied by filing fees of Rs. 5,000/-.

Attachments to Form FTE

1. Affidavit (as per “Annexure A” to the Circular) to be given individually by all Directors;

2. Indemnity Bond (as per “Annexure B” to the Circular) to be given individually by all Directors;

3. Statement of Accounts (as per “Annexure C” to the Circular) certified by PCA  or Statutory Auditor

4. Board Resolution stating to Strike off the name of the Company under FTE Mode;

5. Board Resolution for closure of Bank Accounts;

6. Confirmation letter duly signed by the concerned Banks Official that the Bank Account of the Company is closed;

7. The company shall disclose pending litigations, if any, involving the company while applying under FTE;

8. Form FTE shall be certified by PCA/ PCS/PCMA.

9. If database of directors not maintained by the MCA, a certificate from PCA/ PCS/PCMA  certifying that applicants are present Directors of the Company. Then no need to file Form DIR-12  and  DIR-3 (earlier  DIN 3).

PROCEDURE AT ROC

1. ROC shall examine the same and if found in order,  shall intimate the Co by issuing a notice under Section 560 (3) giving 30 days time, stating that unless cause is shown to the contrary, the name of Company be struck off from the register and the lead to dissolution of the Company.

2.  The Registrar on being satisfied shall strike off the name of the Company from its Register and send notice under Section 560 (5) of the Act for publication in the Official Gazette and the Company stands dissolved from date of publication of the notice in the Official Gazette.

3.  A Company dissolved under Section 560 of the Act can be restored before expiry of 20 years from the date of publication of notice in the Official Gazette by order of the Court. The application for restoration can be made only by the Company, member or creditor.

Unique Code Number allotment to Ineligible Firms

• The Professional Development Committee, ICAI will be using the panel formed on the basis of the MEF form for panel to various requesting authorities/regulators. Therefore, it is requested that all the fields of the form should be filled-in/replies. The information/ replies shall be correct and based on the related document/evidence so as to avoid the delay and causing in-eligibility.

• For MEF 2015-16, Unique Code Number (UCN) will also be allotted to the non-eligible applicants for Bank Branch Auditors' Panel so that their data can be sent to the requisite authorities for other bank audits and other assignments. However, the following applicant will not be allotted UCN:

1. Member practicing in his individual name not holding full time CoP and/or associated as partner/ proprietor/Chartered Accountant employee in any other firm.
2. In case of firm, if none of partner/proprietor is exclusively associated with the firm holding full-time Certificate of Practice (CoP).
3. A member is not treated as exclusively associated with the firm if he is a partner in any other firm or is a sole proprietor of any other proprietary firm or is a paid employee elsewhere.

• It is suggested to fill MEF 2015-16 and get the Unique Code Number (UCN)
• In case applicant faces any problem of any sort, they may login the complaint at the Complaint Centre available at http://www.meficai.org/complaints/complaint_enrty_enter.jsp.
• In case the issue is not resolved than you may mail to the Secretary, PDC (secretarypdc@icai.in).

- CA Kasliwal Ambar

Update from Department of Sales Tax, Government of Maharashtra

Department of Sales Tax, Government of Maharashtra has issued Trade Circular 13T of 2015 dated 14th August 2015 modifying some requirements for online registration and most important is 
(a) accepting the non-registered documents for place of residence and business and 
(b) facility to replace the documents or add other documents is in process and will be communicated at appropriate time after it becomes operational.

- CA Kasliwal Ambar

WIRC Update: Recognition of CAs in Social Service

Dear All,

WIRC has taken the initiative to recognise the CAs of Western Region, involved in Social Services (any category) by organising an event namely “Recognition of CAs in Social Service” on August 27, 2015.

A CA can nominate self as well as submit the recommendation for other CA, who is in Social Service. All the forms selected by screening committee will be appreciated by way of "Certificate of Appreciation".

Request to nominate yourself and inform your known professional counterparts to nominate themselves in “WIRC’s Recognition of CAs in Social Service”, who have undertaken social services. Kindly note that there is “No Nomination Fee”. (Last date for submission of nomination form is August 20, 2015) 

The softcopy of nomination form and brochure is also available at http://wirc-icai.org/noticeboard-detail.aspx?id=%20570 

- CA Kasliwal Ambar