Ministry of Corporate Affairs to propose a scheme for revival of Disqualified Directors
With a view to provide way out to over 300,000 Directors disqualified for associating with Companies which failed to file their Financial Statements and Annual Return for the continuous period of 3 financial years, Ministry of Corporate Affairs proposes to launch “Condonation of Delay Scheme 2018” (CODS-2018) with effect from January 01, 2018 to March 31, 2018.
A draft of the scheme finalized by the Ministry of Corporate Affairs has been placed before the Delhi High Court in response to the various writ petition by directors against their disqualifications.
Key highlights of the proposed Scheme are as follows:
- The Scheme is supposed to be applicable only to defaulting Company (other than the companies which have been struck off/whose names have been removed from the Registrar of Companies);
- The DINs of the disqualified director shall be activated during the validity of the scheme and defaulting Company shall be able to file overdue documents by paying Read more…