Companies Act provisions for striking off company names notified

Source: Business Standard, Dec 29, 2016

New Delhi: Registrar of Companies has to give at least a month’s time to the parties concerned before striking off the name from the register of companies, according to norms issued by the government.

Moving ahead with implementation of remaining sections of the Companies Act, 2013, the provisions related to power of registrar to remove name of a company from register of companies have been notified. Notifying these provisions, the Corporate Affairs Ministry said it has come into effect from December 26.

Related to it, the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 have also been issued.

A senior Ministry official said the latest provisions provide for safeguards at the time of striking off the name from the register of companies.

Among others, the rules require Registrar of Companies (RoC) to issue notice and seek representations, if any, before striking off name from the register.

To operate as a company, it has to be registered with respective Registrar of Companies (RoC) under the Companies Act, which is implemented by the Corporate Affairs Ministry.

“The notice shall contain the reasons on which the name of the company is to be removed from the register of companies and shall seek representations, if any, against the proposed action from the company and its directors along with the copies of relevant documents, if any, within a period of 30 days from the date of the notice,” as per the rules.

Out of 470 sections, 422 sections of the Companies Act, 2013 have been notified as on December 15.

Many provisions of the Act came into effect from April 1, 2014.

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