What do you mean by Strike off of a Company under Companies Act, 2013?
A company is stricken off from the Register of Companies due to one or more of the following reasons:
- Failing to establish business within 1 year of incorporation
- Unable to carry out any business activity or operations for 2 immediately preceding financial years
- Extinguishing all liabilities
Who has the authority to strike off the name of the company?
The Registrar of Companies (ROC) has the power to strike off the name of inoperative companies or the companies which have failed to do statutory filings. The ROCs authoritatively served notices on such companies as mandated by the law and have proceeded with the strike off process.
What is the procedure for revival of strike off companies as per Companies Act, 2013?
The following is the procedure for revival of strike off companies:
Filing of appeal before National Company Law Tribunal
An appeal is required to be filed by the aggrieved company within three years of the Registrar's Order.
Application to tribunal to begin the revival process
The Company’s members or the creditors or the Company itself can file an application to the Tribunal within a period of twenty years from the date of publication of striking off notice in the official gazette. The Tribunal, the ROC and other concerned, shall pass the order as it may deem fit.
What is the process for applying to the Tribunal?
1. Following documents are to be attached with filing of application in Form NCLT-9:
- Copy of Articles of Association and Memorandum of Association of the Company
- List of Directors of the Company.
- Authentic and Certified Copy of the Company's BR for registration to NCLT
- A Copy of proof of application fees paid
- Authentic Certified copy of the Registrar's order for Strike off.
- Signed Copy of Company’s Balance Sheet
- Appeal against order of the Registrar
- An Affidavit verifying petition
- Memorandum of Appearance
2. Application/appeal Services:
Next is to attach the copy of application/appeal by the company to the Registrar and/or other persons as directed by the Tribunal, at least fourteen days before the hearing of the appeal/application is scheduled.
3. Passing of Order by the Tribunal:
After hearing the appeal/application, the appropriate order in Form INC-28 shall be passed by Tribunal.
What are the effects of Order by the Tribunal?
- The certified copy of the order is to be delivered to the ROC within thirty days of passing such order.
- With his official name and seal, the Registrar of Company shall publish the order in the official gazette.
- The applicant shall be liable for the costs of the proceedings
- All pending Balance Sheets and Annual Returns shall be filed as per Companies Act, 2013 by the applicant