The Ministry of Corporate Affairs has issued a General Circular No. 41/2014 with respect to provide clarification on Section 164(2) in reference to the provisions of disqualification of Director with regard to the non-filing of the Annual Financial Statements and Returns under the CLSS, 2014 which now has been extended form 15th October, 2014 to 15th November, 2014 under the CA 2013.
In the light of the above doubts the stakeholders have raised representations to the Ministry seeking clarifications on the matter that if, a company has filed its annual financial statements and returns on or after the commencement of the Act i.e. 1st April, 2014 and before the commencement of the scheme i.e. the CLSS, 2014, whether the same would attract the disqualification of the director under Section 164 or not.
The matter was duly examined and the same was clarified that the provisions of the above scheme are applicable on the companies on prospective basis and the same would not affect and shall not be applicable to the transactions which took place before the date of the scheme when it came into force.
The Circular containing the above mentioned details can also be accessed at the link below.
Company Law Settlement Scheme, 2014- Clarification w.r.t Section 164(2) of the Companies Act, 2013