Strike off finally centralized and zoomed up! - MMJC

Introduction

As we are all aware, Ministry of Corporate Affairs [MCA] is in the process of easing the compliances with the help of technology. Also efforts are being made to automate the process of form verification by ROC in order to reduce the time taken for completion of processes. The latest of such initiatives is the amendment to Companies (Removal of names of companies from the registrar of companies) Rules, form STK-2 and authorising Centre for processing of accelerated corporate exit (CPACE).

Background

MCA through a notification dated 17^th March 2023, had announced formation of CPACE. This centre was formed with a purpose to expedite strike off process by allowing processing strike off documents at a centralised level. A detailed article on CPACE was covered in MMJC insights edition dated 30^th March, 2023.

Link: https://www.mmjc.in/wp-content/uploads/2023/04/mmjc-insights_30-March-23-copy.pdf

In furtherance to that, MCA through a notification dated 17^th April, 2023 has authorized CPACE for strike off related procedures and has amended Companies (Removal of names of companies from the registrar of companies) Rules 2014 and form STK-2, STK-6 & STK-7.

The amendments are effective from 1^st May, 2023

The Key highlights of the Amendment are as follows:

• Rule 4(1) is amended to state that the application for strike off of company shall now be made to CPACE in place of ROC.
• Clause IV of rule 4(3), which required the applicant to attach the copy of special resolution approving strike off to form STK-2, is now deleted, which means, the copy of special resolution need not be attached to form STK-2.
• A new rule 3A is added to say that CPACE shall be considered as ROC for the purpose of strike off. That means, all those rights and responsibilities w.r.t strike off which were earlier exercised by ROC shall now be exercised by CPACE.

Additional Details required:

• Whether or not the company has received any notice from ROC regarding strike off of company?
• The details of SRN of e- form MGT-14 filed for filing the special resolution for strike off of company
• The reasons for closure of business
• Statement of accounts was earlier attached in PDF format now it has to be attached in excel format.
• Some documents which were required to be provided as attachments are no more required to be attached. Instead they are covered under declarations by director of company and a practising professional.

A detailed newsletter in this regard shall follow in due course!