‘Condonation of delay scheme only for bona fide directors’
Context
Only bona fide directors will benefit from the proposed scheme that will provide a three-month window for defaulting companies to submit their filings, a senior government official said.
Plan not open for directors of ‘struck-off’ firms, says Corporate Affairs Secretary
The Condonation of Delay Scheme, which would be rolled out by the Ministry of Corporate Affairs, is expected to come as a relief for disqualified directors. It is to be operational from January 1 to March 31, 2018.
‘Many affected’
- Since so many people were affected, the government felt that some resolution was required without compromising the fight against illegal activities.
- The scheme is not open for directors of struck-off companies. They can come only when they [those companies] are restored through the National Company Law Tribunal (NCLT)
Steps by Corporate Affairs Ministry
- As part of clamping down on illicit fund flows, the corporate affairs ministry has disqualified more than 3.09 lakh directors of companies which failed to submit annual filings for a long time.
- Following the move, concerns were raised that many directors of genuine companies have also been disqualified
- Besides, some individuals moved courts against their disqualification.
Director Identification Numbers
- As per a draft circular, the Director Identification Numbers of disqualified directors that have been deactivated would be ‘temporarily activated’ during the scheme period.
- After submitting the filings under the scheme, a company concerned would have to file a separate form seeking condonation of the delay along with a fee of ₹30,000, it added
