{"id":3535,"date":"2017-12-30T17:27:07","date_gmt":"2017-12-30T11:57:07","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=3535"},"modified":"2021-12-24T13:00:38","modified_gmt":"2021-12-24T07:30:38","slug":"condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/","title":{"rendered":"Condonation of delay scheme- disqualification of a director"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d317b056cea\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d317b056cea\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#CONDONATION_OF_DELAY_SCHEME_2018_General_Circular_No162017_dated_29122017\" title=\"CONDONATION OF DELAY SCHEME, 2018 (General Circular No.16\/2017 dated 29\/12\/2017)\">CONDONATION OF DELAY SCHEME, 2018 (General Circular No.16\/2017 dated 29\/12\/2017)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#What_are_the_criteria_of_Eligibility_for_this_Disqualified\" title=\"What are the criteria of Eligibility for this Disqualified:\">What are the criteria of Eligibility for this Disqualified:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#Disqualification_of_a_director\" title=\"Disqualification of a director\">Disqualification of a director<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#The_Action_of_MCA_in_disqualifying_directors\" title=\"The Action of MCA in disqualifying directors.\">The Action of MCA in disqualifying directors.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#Defaulting_companies\" title=\"Defaulting companies\">Defaulting companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#Overdue_documents\" title=\"Overdue documents\">Overdue documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#KIND_OF_DOCUMENTS_REQUIRED_BY_THE_DIRECTOR_RENEWAL\" title=\"KIND OF DOCUMENTS REQUIRED BY THE DIRECTOR RENEWAL\">KIND OF DOCUMENTS REQUIRED BY THE DIRECTOR RENEWAL<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#What_is_action_to_be_taken_immediately_required\" title=\"What is action to be taken immediately required? \">What is action to be taken immediately required? <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#We_needed_to_Be_Appointing_New_Directors_Temporarily\" title=\"We needed to Be Appointing New Directors Temporarily:\u00a0\">We needed to Be Appointing New Directors Temporarily:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#DIN_and_Director_Identification_No_requirement\" title=\"DIN and Director Identification No requirement:\">DIN and Director Identification No requirement:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#Process_of_Becoming_a_Director_Again_After_Disqualification_Director_Identification_No\" title=\"Process of Becoming a Director Again After Disqualification Director Identification No?\">Process of Becoming a Director Again After Disqualification Director Identification No?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#Comparison_of_Under_Condonation_of_Delay_Scheme_CODS_and_Under_The_High_Court\" title=\"Comparison of Under Condonation of Delay Scheme (CODS) and Under The High Court\">Comparison of Under Condonation of Delay Scheme (CODS) and Under The High Court<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#Particulars\" title=\"Particulars\">Particulars<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#Under_The_High_Court\" title=\"Under The High Court\">Under The High Court<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#Under_Condonation_of_Delay_Scheme_CODS\" title=\"Under Condonation of Delay Scheme (CODS)\">Under Condonation of Delay Scheme (CODS)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#PROCEDURE_%E2%80%93\" title=\"PROCEDURE:&#8211;\">PROCEDURE:&#8211;<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#Period_of_the_scheme\" title=\"Period of the scheme\">Period of the scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#Powers_of_Registrar\" title=\"Powers of Registrar\">Powers of Registrar<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#ALL_DISQUALIFICATION_OF_DIN_ARE_REMOVED_BY_MCA_TODAY\" title=\"ALL DISQUALIFICATION OF DIN ARE REMOVED BY MCA TODAY\">ALL DISQUALIFICATION OF DIN ARE REMOVED BY MCA TODAY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/carajput.com\/blog\/condonation-of-delay-scheme-2018-general-circular-no-162017-dated-29122017\/#FAQ_on_Removal_of_Directors_Disqualification\" title=\"FAQ on Removal of Directors Disqualification\">FAQ on Removal of Directors Disqualification<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-19262\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/12\/Delay-Scheme-n.png\" alt=\"Delay-Scheme \" width=\"1015\" height=\"522\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/12\/Delay-Scheme-n.png 1015w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/12\/Delay-Scheme-n-300x154.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/12\/Delay-Scheme-n-768x395.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/12\/Delay-Scheme-n-800x411.png 800w\" sizes=\"(max-width: 1015px) 100vw, 1015px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"CONDONATION_OF_DELAY_SCHEME_2018_General_Circular_No162017_dated_29122017\"><\/span><span style=\"color: #ff9900;\">CONDONATION OF DELAY SCHEME, 2018 (General Circular No.16\/2017 dated 29\/12\/2017)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ministry of Corporate Affairs had disqualified around 3,09,000 directors that failed to comply with the rules and regulations specified u\/s 164(2) &amp; 167(1)(a) of the Company Act. as a result, the MCA has blocked Director Identification No of all the disqualified directors.<\/p>\n<p>Thereafter lot of aggrieved directors &amp; many companies came out seeking to find out a solution of that. Finally, the Govt of India came out with the <span style=\"color: #000080;\"><strong>\u2018Condonation of Delay Scheme\u2019<\/strong><\/span>\u00a0wherein it provides a chance to file the required documents &amp; \u00a0safeguard their current position of disqualified <a href=\"https:\/\/carajput.com\/blog\/tag\/who-is-an-independent-director\/\">Director.<\/a><\/p>\n<p>As parsec 92 of the Companies Act, 2013 provides that every company shall prepare an annual return in the prescribed form. The annual return shall be signed by a director and the company secretary, or where there is no company secretary, by a company secretary in practice. Every company shall file with the Registrar a copy of the annual return, within <em>sixty<\/em>\u00a0days from the date on which the annual general meeting is held.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_criteria_of_Eligibility_for_this_Disqualified\"><\/span><span style=\"color: #000080;\">What are the criteria of Eligibility for this Disqualified:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If a person \u2014<\/p>\n<ul>\n<li>has failed to file annual returns or financial statements for last for three FY; or<\/li>\n<li>has not repaid the deposits taken or paid interest or redeemed any debentures, such failure to pay or redeem has taken place for 1 year or more,<\/li>\n<\/ul>\n<p>He\/she shall also not be eligible to be re-appointed as a director of that company or any other company for a period of five years from the date.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Disqualification_of_a_director\"><\/span><span style=\"color: #000080;\"><strong>Disqualification of a director<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/12\/Director-removal1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-11365\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/12\/Director-removal1.jpg\" alt=\"\" width=\"860\" height=\"680\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/12\/Director-removal1.jpg 603w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/12\/Director-removal1-300x237.jpg 300w\" sizes=\"(max-width: 860px) 100vw, 860px\" \/><\/a><\/p>\n<p>As par sec164 (2)\u00a0provides that no person who is or has been a director of a <a href=\"https:\/\/carajput.com\/blog\/tag\/public-limited-company\/\">company<\/a> which\u00a0has not filed financial statements or annual returns for any continuous period of three financial years shall be eligible to be re-appointed as a director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so.<\/p>\n<p>Sec- 167(1) (a)\u00a0provides that the office of a director shall become vacant in case\u00a0he incurs any of the disqualifications specified in\u00a0sec-164\u00a0i.e., failure to file annual returns for any continuous period of three financial years.<\/p>\n<p>Rule 14 of the Companies (Appointment and Qualification of Directors) Rules, 2014 provides that every director shall inform to the company concerned about his disqualification, if any, under section 164 (2) in Form DIR \u2013 8.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_Action_of_MCA_in_disqualifying_directors\"><\/span><span style=\"color: #000080;\"><strong>The Action of MCA in disqualifying directors<\/strong>.<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Ministry of Corporate Affairs in September 2017 identified 3, 09,614 directors associated with the companies that had failed to file the financial statements or annual returns in the MCA 21 online registry for a continuous period of three financial years 2013 \u2013 14, 2014 \u2013 15, 2015 \u2013 16 in terms of provisions of\u00a0section 164(2)\u00a0read with\u00a0section 167 (1) (a) of the\u00a0Act\u00a0and they were barred from accessing the online registry.\u00a0 A list of such directors was also published on the website of Ministry of Corporate Affairs.<\/p>\n<p><span style=\"color: #000080;\"><strong>Condonation of Delay Scheme:<\/strong><\/span><\/p>\n<p>U\/s 8 of the company Act 2013, All incorporated company has to submit its financial returns every year with Ministry of Corporate Affairs. Under the company Act 2013, any company or the director of such company has failed to do the same for the last three years could be disqualified on the same grounds, wherein the<strong>\u00a0company would get the status of \u2018Strike off\u2019<\/strong>\u00a0from \u2018Active\u2019 and for any director, it would lead to its disqualification.<\/p>\n<p><strong>\u2018Condonation of Delay Scheme\u2019<\/strong>\u00a0 was operational from 1st Jan to 30th April under which temporary activation of DIN would take place and he\/she can file all the required documents under the scheme. Failing to do so would lead during this period, would lead to disqualification of a director for the coming Five Years.<\/p>\n<p><strong>Condonation of delay scheme, 2018: <\/strong>Consequent of the action made by MCA disqualifying the directors of the companies, there has been a spare of representations from industry, defaulting companies, and their directors.<\/p>\n<p>The Ministry of Corporate Affairs has announced a one \u00a0time settlement scheme for companies that saw over three lakh directors disqualified from their boards, with a view to giving an opportunity for the non-compliant defaulting companies to rectify the default<\/p>\n<p>This scheme is applicable to all <strong>defaulting companies<\/strong>, other than the companies which have been struck off or whose names have been removed from the register of companies under section\u00a0248(5)\u00a0of the\u00a0Act. A defaulting company is permitted to file its <strong>overdue documents<\/strong> which were due for filing till 30.06.2016 in accordance with the provisions of this scheme.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Defaulting_companies\"><\/span><span style=\"color: #000080;\"><strong>Defaulting companies<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The expression \u2018defaulting company\u2019 is defined as a company which has not filed its financial statements or annual return as required under the\u00a0Companies Act, 1956\u00a0or\u00a0Companies Act, 2013, as the case may be, and the Rules made there under for a continuous period of three years.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Overdue_documents\"><\/span><span style=\"color: #000080;\"><strong><em>Overdue documents<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The expression \u2018overdue documents\u2019 is defined as the financial statements or the annual returns or other associated documents, as applicable, in the case of a defaulting company.<\/p>\n<p>The following are the overdue documents-<\/p>\n<ul>\n<li>Form No. 20B\/MGT-7 \u2013 Form for filing Annual return by a company having share capital;<\/li>\n<li>Form 21A\/MGT-7 \u2013 Particulars of Annual Return for the company not having share capital;<\/li>\n<li>Form 23AC, 23ACA, 23AC-XBRL, 23ACA-XBRL, AOC \u2013 4(CFS), AOC (XBRL) and AOC -4 (non-XBRL) \u2013 Forms for filing balance sheet\/financial Statement and profit and loss account;<\/li>\n<li>Form 66- Form for submission of compliance certificate with the Registrar;<\/li>\n<li>Form 23B\/ADT \u2013 1 \u2013 Form for intimation for appointment of auditors.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"KIND_OF_DOCUMENTS_REQUIRED_BY_THE_DIRECTOR_RENEWAL\"><\/span><span style=\"color: #ff0000;\"><strong>KIND OF DOCUMENTS REQUIRED BY THE DIRECTOR RENEWAL<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/12\/Director-removal-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-11368\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/12\/Director-removal-2.jpg\" alt=\"\" width=\"712\" height=\"433\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/12\/Director-removal-2.jpg 712w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/12\/Director-removal-2-300x182.jpg 300w\" sizes=\"(max-width: 712px) 100vw, 712px\" \/><\/a><\/p>\n<p><span style=\"color: #000080;\"><strong>Case 1: Without Condonation of Delay Scheme<\/strong><\/span><\/p>\n<p><span style=\"color: #000080;\"><strong>Sub Case 1: Company was not functioning<\/strong><\/span><\/p>\n<ul>\n<li>Petition with High Court<\/li>\n<li>Overdue Documents as per section 403<\/li>\n<li>e-CODS on MINISTRY OF CORPORATE AFFAIRS21 portal<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Sub Case 2: Company was functioning<\/strong><\/span><\/p>\n<ul>\n<li>Application before NCLT<\/li>\n<li>Overdue Documents as per Section 403<\/li>\n<li>e-CODS on MINISTRY OF CORPORATE AFFAIRS21 portal.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Case 2 : With Condonation of Delay Scheme<\/strong><\/span><\/p>\n<ul>\n<li>Overdue Documents as per Section 403<\/li>\n<li>e-CODS on MINISTRY OF CORPORATE AFFAIRS 21 portal<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_is_action_to_be_taken_immediately_required\"><\/span><span style=\"color: #000080;\"><strong>What is action to be taken immediately required? <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"We_needed_to_Be_Appointing_New_Directors_Temporarily\"><\/span><span style=\"color: #000080;\"><em>We needed to Be Appointing New Directors Temporarily:\u00a0<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The prompt thing that must be done by promoters after a director has been disqualified shall be to file all pending ROC returns. Finally, after disqualifying the directors of a Company,, they would be barred from filing any pending Ministry of Corporate Affairs Annual financial statement along with returns to complete agreement up to date.<\/p>\n<p>Due to that, the current Director should therefore be supposed to execute resolutions to assign the new director in the company. The existing directorates are also prevented from signing a new Director application for director appointment with the MCA as they are disqualified or not eligible to do so.<\/p>\n<p>To prevent it, the Directors together with a via CA or CS Professional would have to advance to the concerned ROC for the appointment of Director through the Ministry of Corporate Affairs back end.<\/p>\n<p><span style=\"color: #000080;\"><strong>Annual Return under Condonation of Delay Scheme:<\/strong><\/span><\/p>\n<p>What is the Filing applicable on Annual Return under Condonation of Delay Scheme? The Directors of a defaulting company can file the following forms relating to the appointment of Auditor and annual return:<\/p>\n<ul>\n<li>Form No 21A\/MGT-7- Annual return particulars without share capital.<\/li>\n<li>Form No 20B\/MGT-7- Form to file Annual Return having share capital.<\/li>\n<li>Form No 23AC, 23ACA, 23AC-XBRL, 23ACA-XBRL, AOC-4, AOC-4(CFS), AOC (XBRL) and AOC-4(non-XBRL) \u2013 Forms to BS \/FS along with P&amp;L A\/c.<\/li>\n<li>Form No 66- Form to submit as Compliance Certificate to the Registrar.<\/li>\n<li>Form No 23B\/ADT-1- Form to intimate Appointment of Auditors.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"DIN_and_Director_Identification_No_requirement\"><\/span><span style=\"color: #000080;\"><strong>DIN and Director Identification No requirement:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Director Identification No (DIN) is a unique number allocated to both the existing director or would-be director of any existing company incorporated under section 266A &amp; 266G of the Act,2006.<\/p>\n<p>The idea of Director Identification No was to create of all the directors on an individual basis so that any case of any wrongdoing be prevented &amp; if any such is done, it could be tracked within the timeline.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Process_of_Becoming_a_Director_Again_After_Disqualification_Director_Identification_No\"><\/span><span style=\"color: #000080;\"><strong>Process of Becoming a Director Again After Disqualification Director Identification No?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No process has been taken until the end of the last 5 Years before the Ministry of Corporate Affairs to appoint a Disqualified Director, a Director again. But all employees are still awaiting a process to remove disqualifications after the necessary compliance and payment of a penalty has been made available to the Ministry of Corporate Affairs.<\/p>\n<p>The removal of a Director is not always a simple process, but it is occasionally obligatory to defend the interests of the company. For shareholders with Directors, it is essential to remember that when trying to release a Director they deal with a person, and therefore a conflict of duties is always possible.<\/p>\n<p>It can be concluded that since the Companies Act 2013 does not appear to be a feasible solution, the complaint Director under Article 226 of our Constitution is permitted to make a written petition to the High Court in order to provide a backup cure accessible.<\/p>\n<p>Whether shareholders will decide to remove them, apply to the ASIC or talk with the director about the issues, we should consider the route of the least resistance.<\/p>\n<p>Recording concerns and the process is an easy way to protect against risks and to preserve transparency. So once a director is unable to qualify for 164(2), it can be stated that he shall continue for 5 years of age. The promoters must appoint new directors for the smooth operation of the company in Active Companies.<\/p>\n<p>In the event that a director of a struck-off company wishes to take advantage, or to remove his disqualification from Condonation of Delay Scheme-2018, a written petition for the same may be submitted at Hon&#8217;ble High Court.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Comparison_of_Under_Condonation_of_Delay_Scheme_CODS_and_Under_The_High_Court\"><\/span><span style=\"color: #000080;\"><strong><u>Comparison of Under Condonation of Delay Scheme (CODS) and Under The High Court<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table width=\"687\">\n<tbody>\n<tr>\n<td width=\"267\">\n<h3><span class=\"ez-toc-section\" id=\"Particulars\"><\/span><span style=\"color: #ff0000;\"><strong>Particulars<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<td width=\"210\">\n<h3><span class=\"ez-toc-section\" id=\"Under_The_High_Court\"><\/span><span style=\"color: #ff0000;\"><strong>Under The High Court<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<td width=\"210\">\n<h3><span class=\"ez-toc-section\" id=\"Under_Condonation_of_Delay_Scheme_CODS\"><\/span><span style=\"color: #ff0000;\"><strong>Under Condonation of Delay Scheme (CODS)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"267\"><strong>The functionality of the Company<\/strong><\/p>\n<p><strong><em><u>\u00a0<\/u><\/em><\/strong><\/td>\n<td width=\"210\">Non-Operational<\/p>\n<p><strong><em><u>\u00a0<\/u><\/em><\/strong><\/td>\n<td width=\"210\">Operational<\/p>\n<p><strong><em><u>\u00a0<\/u><\/em><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"267\"><strong>Status of the Company<\/strong><\/p>\n<p><strong><em><u>\u00a0<\/u><\/em><\/strong><\/td>\n<td width=\"210\">Struck-Off<\/p>\n<p><strong><em><u>\u00a0<\/u><\/em><\/strong><\/td>\n<td width=\"210\">Active\/Struck Off<\/p>\n<p><strong><em><u>\u00a0<\/u><\/em><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"267\"><strong>Mode of Application<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/td>\n<td width=\"210\">Petition to the court<\/p>\n<p>&nbsp;<\/td>\n<td width=\"210\">Application with NCLT(or Direct e-CODS)<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"267\"><strong>Chances of Revival<\/strong><\/p>\n<p><strong><em><u>\u00a0<\/u><\/em><\/strong><\/td>\n<td width=\"210\">Less chances<\/p>\n<p><strong><em><u>\u00a0<\/u><\/em><\/strong><\/td>\n<td width=\"210\">Quite Good or More chances<\/td>\n<\/tr>\n<tr>\n<td width=\"267\"><strong>Fee Charged<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/td>\n<td width=\"210\">Little More<\/td>\n<td width=\"210\">Economical or Less<\/p>\n<p><strong><em><u>\u00a0<\/u><\/em><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"PROCEDURE_%E2%80%93\"><\/span><span style=\"color: #000080;\"><strong>PROCEDURE:<\/strong><\/span>&#8211;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The DINs of the disqualified directors de-activated shall be temporarily activated during the validity period to enable them to file the overdue documents;<\/li>\n<li>Defaulting company shall file the overdue documents paying the statutory filing fee and additional fee payable.<\/li>\n<li>The defaulting company after filing the documents under this scheme shall seek condonation of delay by filing e-CODS 2018 along with a fee of \u2013Rs 30,000\/- as prescribed under the\u00a0Companies (Registration Offices and Fee) Rules, 2014 \u00a0well before the last date of the scheme<\/li>\n<li>The DINs of the directors associated with the defaulting companies that have not filed their overdue documents and the e-form CODS and these are not taken on record in the MCA \u2013 21 registries and are still found to be disqualified on the conclusion of the scheme shall be liable to be deactivated on the expiry of the scheme.<\/li>\n<li>If the name of the company is removed from the register of companies under sec-248 of the Act and if the said company has filed an application for revival under sec-252 up to the date of the scheme, the Director\u2019s DIN shall be re-activated only NCLT order of revival subject to the company having filing all overdue documents.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Period_of_the_scheme\"><\/span><span style=\"color: #000080;\"><strong>Period of the scheme<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>The scheme shall come into force with effect from 01.01.2018 and shall remain in force up to 31.03.2018.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Powers_of_Registrar\"><\/span><span style=\"color: #000080;\"><strong>Powers of Registrar<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>The Registrar concerned shall withdraw the prosecution(s) pending if any before the concerned court(s) for all documents filed under the scheme.<\/p>\n<p>This scheme is without prejudice to action under\u00a0section 167(2) of the\u00a0Act or civil and criminal liabilities, if any, of such disqualified directors during the period they remained disqualified.<\/p>\n<p>At the conclusion of the scheme, the Registrar shall take all necessary actions under the respective Act against the companies who have not availed themselves of this scheme and continue to be in default in filing the overdue documents.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"ALL_DISQUALIFICATION_OF_DIN_ARE_REMOVED_BY_MCA_TODAY\"><\/span><span style=\"color: #000080;\"><strong>ALL DISQUALIFICATION OF DIN ARE REMOVED BY MCA TODAY<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>CHECK YOUR DIN STATUS HERE<br aria-hidden=\"true\" \/><br aria-hidden=\"true\" \/><a href=\"https:\/\/www.mca.gov.in\/mcafoportal\/showEnquireDIN.do\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"NotApplicable\" data-linkindex=\"0\">https:\/\/www.mca.gov.in\/mcafoportal\/showEnquireDIN.do<\/a><\/p>\n<h4><span class=\"ez-toc-section\" id=\"FAQ_on_Removal_of_Directors_Disqualification\"><\/span><span style=\"color: #ff9900;\"><strong>FAQ on Removal of Directors Disqualification<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"color: #000080;\"><strong>Q 1.: Is any disqualified director Act as A Shareholder In the Company?<\/strong><\/span><\/p>\n<p>Ans: Yes, Irrespective of whether a disqualified director has disqualified under section 164 of the Act of vacated the office under section 167 of the Act, he\/she can continue to be a shareholder of the company.<\/p>\n<p><span style=\"color: #000080;\"><strong>Q2.: What Is a basic Course of Action for any Individual Once He\/She Has Served 5 years of Disqualification?<\/strong><\/span><\/p>\n<p>Ans: The individual will have to make an application to the Registrar of Companies in form of DIR-10 as per rule 14(5) of the Companies Act asking for the removal of his\/her name from the list. But such application can be made only after the completion of five years.<\/p>\n<p><span style=\"color: #000080;\"><strong>Q3 : What Will Happen If All the Directors Are Disqualified Under The \u2018Condonation of Delay Scheme\u2019?<\/strong><\/span><\/p>\n<p>Ans. : If for a company any such case arises, either a Promoter or the Ministry of Corporate Affairs (only in absence of a promoter) shall appoint a required number of directors till the time directors are not appointed in the general meeting.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CONDONATION OF DELAY SCHEME, 2018 (General Circular No.16\/2017 dated 29\/12\/2017) Ministry of Corporate Affairs had disqualified around 3,09,000 directors that failed to comply with the rules and regulations specified u\/s 164(2) &amp; 167(1)(a) of the Company Act. as a result, the MCA has blocked Director Identification No of all the disqualified directors. Thereafter lot of &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[258],"tags":[1063,432,430,1855,1856],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3535"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=3535"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3535\/revisions"}],"predecessor-version":[{"id":20423,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3535\/revisions\/20423"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=3535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=3535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=3535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}