All companies registered in India including private limited company, one person company, limited company, section 8 company and others are required to file an annual return with the Ministry of Corporate Affairs each year.
Under the new Companies Act, 2013, Directors of companies which have defaulted in filing annual return continuously for a period of 3 years are liable for disqualification, the Director would be unable to incorporate a new company or act as Director of an existing company for a period of three years.
Aggrieved by the disqualification many disqualified Directors had made representations to the Ministry of Corporate Affairs and approached the National Company Law Tribunal and High Courts for staying order of disqualification.
“The scheme is giving a window of opportunity to directors who may have been affected due to negligence or such reasons…. the struck off companies were given due opportunity and they did not do anything…. the scheme is only for authentic directors,” said by senior government official.
Taking into consideration the representations made by various stakeholders, the Central Government and Ministry of Corporate Affairs has now introduced the Condonation of Delay Scheme to provide a final opportunity r defaulting companies and Directors to regularize compliance before 31st March, 2018.