Companies Struck Off Under Section 248 of the Companies Act: Process and Updates

In the world of business, sometimes companies decide they no longer want to continue their operations. In such cases, the government provides a legal process to remove the company’s name from the official register. This is what we call “striking off” a company. Let’s break down what this means and how it works.

What is a Company Name Removal or “Striking Off”?

When a company is no longer in business or has failed to start its operations, it may request to have its name removed from the Register of Companies. This process is called “striking off.” It means the company will no longer be recognized as a registered entity, and it can no longer operate as a business.

Why Would a Company be Struck Off?

There are several reasons why the government may remove a company’s name:

• Failure to Start Business: If a company hasn’t started its business within a year of incorporation.
• No Operations for Two Years: If the company has not conducted any business or operations for two consecutive years.
• Dormant Status: A company may request a “dormant” status under Section 455 of the Companies Act, which means it is not conducting business but still exists.
• Non-Payment of Subscriptions: If the subscribers (the people who initially supported the company) haven’t paid the required amount they agreed to at the time of the company’s formation.

How Does the Process Work?

When a company applies to have its name removed from the official register, the Registrar of Companies (ROC) begins a review process to ensure that the company meets all the legal requirements. If the company qualifies for removal, a public notice is issued, informing the public about the proposed action.

How Can Someone Object to a Name Removal?

If someone believes that a company should not be removed from the register, they can file an objection. They must send their objection to the office of the Registrar of Companies within 30 days from the publication of the notice. This ensures that all stakeholders have a chance to voice their concerns before the name is officially removed.

The Role of C-PACE

The Centre for Processing Accelerated Corporate Exit (C-PACE) is the government body responsible for handling such processes. It makes sure that the removal of company names is done in accordance with the law and that no company is removed unjustly.

Conclusion

The removal of a company’s name from the Register of Companies is a crucial process in maintaining accurate business records. It helps ensure that only active companies remain on the register, and it also protects the interests of anyone involved in or with a company.

For more information on the companies struck off, click here.

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