1. Modes of Strike Off of a Company under Companies Act 2013:

 

Pursuant to the provisions of Companies Act, 2013 there are two modes of strike off as mentioned below:

 

• Strike off by ROC under Section 248(1) of the Companies Act 2013

 

• Strike off by Company by its own under Section 248(2) of the Companies Act 2013.

 

2. Grounds of strike Off of a Company under Companies Act 2013:

 

A company has failed to commence its business within one year of incorporation. The company is not carrying out any business or Activity for preceding 2 financial years and has not sought the status of Dormant Company under Section 455 of the Act.

 

3. Strike off by ROC under Section 248(1) of the Companies Act 2013

 

The registrar if having a reasonable cause as mentioned above may send notice in Form STK-1 of Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 to the act.

 

• Company and
• all the Directors of the company,

 

Informing his intention to remove company’s name from the record and request company to send its representations along with supporting documents within thirty days from the date of notice. This process can also be called as Compulsory removal of name from registrar of companies.

 

 

4. Strike off by Company by its own under Section 248(2) of the Companies Act 2013

The company can file an application in E-form STK-2 with Registrar of Companies suo motto after extinguishing all its liabilities, by special resolution or with the consent of seventy five percent of the members in terms of paid up share capital, to the Registrar for removing the name of the Company on all or any of the above mentioned grounds

 

5. Process followed by Company for Strike off by Company by its own under Section 248(2) of the Companies Act 2013

 

 a). Holding of Board Meeting.

 b). Extinguishment of all the Liabilities

 c). Holding of General Meeting

 d). Approval of Concern Authorities

 e). Application to ROC by Company

 

 

6. Categories of Companies which cannot be Strike Off: [Proviso of R.3(1)]

 

• Listed companies;
• Companies that have been delisted due to non-compliance of listing regulations or listing agreement or any other statutory laws; vanishing companies(*);

• Companies where inspection or investigation is ordered and being carried out or actions on such order are yet to be taken up or were completed but prosecutions arising out of such inspection or investigation are pending in the Court;;

    

• Companies against which any prosecution for an offence is pending in any court;

• Companies, which have accepted public deposits which are either outstanding or the company is in default in repayment of the same;

• Companies having charges which are pending for satisfaction; and
• Companies registered under section 25 of the Companies Act, 1956 or section 8 of the Act, etc.

 

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