Under the Companies Act, 2013 companies are required to file their annual financial statements and annual returns with the Registrar of Companies and the failure to do so qualifies as an offence under the Act. As per Section 164(2) read along with Section 167 of the Companies Act, 2013, the director of a company that has defaulted in filing annual returns or a financial statement for a continuous period of three years will be disqualified.
This Condonation of Delay Scheme was introduced by the Ministry of Corporate Affairs in response to a large number of directors who were disqualified due to default by a company in filing annual return or financial statement for a continuous period of three years. The scheme is effective from 1st January, 2018 to 31st March, 2018.
- The COD Scheme will remain valid from 01.01.2018 till 31.03.2018;
- The Scheme is applicable to all defaulting companies (other than companies which have been stuck off from the register of companies);
- Only the documents which were due for filing till 30.06.2017 can be filed under the COD Scheme;
- The DINs of disqualified directors will be temporarily activated during the validity of the Scheme;
- The benefits of this Scheme can be availed only for filing e-forms 20B/MGT-7 (form for filing annual return by a company having share capital), 21A/MGT-7(particulars of annual return for company not having share capital), 23AC, 23ACA, 23AC-XBRL, 23ACA-XBRL, AOC-4, AOC-4 (CFS), AOC-4 (XBRL), 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) and Form 23B/ADT-1 (form for intimation for appointment of auditors).
January 17th, 2018