One Time Opportunity for Disqualified Directors to Avail the “Condonation of Delay Scheme”
With a view to giving opportunity to the defaulting and non-compliant companies to rectify the default, Central Government has introduced a scheme called “Condonation of Delay Scheme 2018” which will be in operation from 1 st January 2018 to 31 st March 2018.
The scheme is providing an opportunity to the disqualified directors to avail the scheme and normalize the operations by filing their returns through a window which shall be in operation for a period of three months, from January 2018 to March 2018.
A few months back, MCA had to disqualify more than two lakh directors of shell companies who had failed to file their annual returns and annual financial statements for a period of three years violating
provisions of Companies Act, 2013.
Procedure to be followed for the Condonation of Delay Scheme 2018. This applies to all the companies whose name has not been removed/struck off from the register of companies:
A) The DINs of the concerned disqualified directors shall be activated during the validity of the scheme which is deactivated at present so that they can file the overdue documents and statements.
B) Overdue documents are to be filed in a prescribed e-forms along with the statutory fee and additional fee payment of Rs.30,000/- as per section 403 of the Companies Act.
C) After filing the overdue documents, the company shall seek for the condonation of delay by the filing of form e-CODS attached to the scheme along with a fee of Rs. 30,000/- on the MCA portal before the last day of the scheme.
D) If the director of the defaulting company failed to file the overdue documents and file e-form CODS and utilize benefit out of the scheme, his DIN will be deactivated at the expiry of the scheme.
Scheme applicable only to the following documents:
Form Number 20B/MGT-7- Form for filing the Annual return by a company having share capital.
Form 21A/MGT-7- Particulars of Annual return for the company not having share capital.
Form 23AC, 23ACA, 23AC-XBRL, 23ACA-XBRL, AOC-4, AOC-4(CFS), AOC
(XBRL) and AOC-4(Non- XBRL) – Forms for filing Balance
Sheet/Financial Statement and profit and loss account.
Form 66- Form for submission of Compliance Certificate with the Registrar.
Form 23B/ADT-1- Form for intimation for Appointment of Auditors.