S. Jaykishan

Chartered Accountants

One-time settlement for minor company law offences to help NCLT

Govt plans for one-time settlement for minor, non-serious company law offences to help NCLT

(Date posted:4/08/2018)

The government may soon release one-time settlement for minor and non-serious company law offences removing 60% of the ongoing cases in the National Company Law Tribunal and special courts and free up bandwidth to deal with the insolvency matters.

The cases that may be withdrawn under the scheme are likely to fall under 16 categories attracting both fines and penal provisions. To name such offences to include failure or delay in filing resolutions and financial statements, contraventions related to director identification number and managerial remuneration and delay in filing of notices for alteration of share capital. A 14 member committee has been set-up by the government to legitimatize offences under the Companies Act and release various provisions to liberalize the Act.