No. 1/5/2000-CL.V

Government of India

Ministry of Law, Justice & Company Affairs

Department of Company Affairs

5^th floor, `A’ Wing,

Shastgri Bhavan,

Dr. R.P. Road, New Delhi.

Dated 25^th September, 2000

PRESS NOTE 10/2000

Subject : Fast Track Scheme under Section 560 of the Companies Act – reg.

EASY EXIT ROUTE FOR COMPANIES

It has come to the notice of the Department that while a large number of companies have been registered but due to various reasons some of them have failed to take off. The promoters of such companies have been requesting the Government to strike off the name of the company by adopting an easy to follow method in a time bound manner.

2. A number of representations from professional bodies/ individuals have also been received during the operation of CLSS 2000.

3. Recognizing the urgent need , the Department has decided to launch `Fast Track Section 560 Scheme’ with effect from 28^TH September, 2000. Three different coloured forms have been prescribed.

a) White Coloured Form for applicants of CLSS 2000 upto 31 August, 2000; (Fast Track 1)

b) Pink Coloured Form for applicants of CLSS 2000 from 1^st September to 30^th September, 2000 (Fast Track II)

c) Blue Coloured Form for all other applicants who have filed the documents with the Registrars in the past in respect of defunct companies and have sought their names to be struck off.

4. The Blue Form is for those applicants who file their applications after 30^th September, 2000 and who wish to avail the benefit of the Section 560

Scheme. They will however, be required to pay lump sum fee as per the table given below :

5. The cost of each forms has been prescribed as Rs. 100/-. The pre-numbered forms will be supplied in the respective office of the ROC’s and RD’s throughout the country.

6. The Companies availing of this Scheme will be enormously benefited as it would be a simple `exit route’ for them particularly those companies which have no business and they have availed of Company Law Settlement Scheme 2000. This will also help the other companies who want to exit the corporate form of business on the payment of specified lump sum amount. They will be saved from the protracted process of voluntarily winding up of companies.

7. The scheme will be in operation from 28^th September till 26^th November, 2000 ( 60 days).

8. A copy of this Press Note dated 25.9.2000 has been placed at the Web-page of the Department of Company Affairs at the Internet Address http://www.nic.in/dca.

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