COMPANY LAW SETTLEMENT SCHEME, 2014 (CLSS-2014) - Clarification u/s 164(2) of the Companies Act, 2013.(General Circular No. 41/2014)

General Circular No. 41/2O14

 No. 2/13/2014-CL-V

Government of India

Ministry of Corporate Affairs 

"A" Wing, 5th Floor, Shastri Bhawan

Dr. R.P. Road, New Delhi 110001

Date 15.10.2014

To

All Regional Directors, 

All Registrar of Companies,

All Stakeholders

Subject: COMPANY LAW SETTLEMENT SCHEME, 2014 (CLSS-2014) - Clarification u/s 164(2) of the Companies Act, 2013.

Sir,

Representations have been received from stakeholders seeking clarification as to whether immunity from disqualification of directors pursuant to clause (a) of sub-section (2) of section 164 of the Companies Act, 2013 will be applicable with respect to companies who have filed Balance Sheets and Annual Returns on or after 01/04/2014, but before coming into force of CLSS-2014 with effect from 15.08.2014 as contained in General Circular No. 34/2014 dated 12/08/2014.

2. The matter has been examined and it is hereby clarified that in case of companies, who have filed their balance sheets and annual returns on or after 01/04/2014 but prior to launch of CLSS-2014, disqualification under clause (a) of sub-section (2) of section 164 of the Companies Act, 2013 shall apply only for prospective defaults, if any, by such companies.

3. This issues with the approval of the competent authority.

Yours faithfully.

(K.M.S. Narayanan)

Assistant Director (Policy)

Copy forwarded for information to:-

1. e-governance section and web contents officer to place the circular on Ministry's website
2. Guard File.