Easy exit scheme - company with fixed assets
Raja Rajeswari S
(Querist) 11 June 2010
This query is : Resolved
A private ltd which was not in operation for the past ten years wants to get its name striken off ROC records through the present Easy exit scheme.
The company has properly filed annual returns till now. The Company has a fixed asset of land for Rs 12 lacs and a share capital to that same extent. The Balance sheet filed every year shows the above asset(Rs. 12Lacs)and share capital liability (Rs. 11.75)with a nominal creditor liability(Rs. 0.25 lacs). The company was not in operation for the 10 years. The company does not have any secured loan.
the company wants to sell the land in company's name to the shareholders for rs. 10 lakhs. After this sale, the balance sheet will have a capial liability of Rs. 1.75 lakhs and crs of .25 lacs and a the loss on sale of land of Rs. 2 lacs debited in P&L A/c in the assets side.
Should the company pass any special resolution to sell its property to its members?
In above case as the asset(land) is sold and it is given to the share holders thus deducting their capital liability, will it not amount to capital reduction u/s 100 of the Co’s act?
If so, Will the ROC accept this balance sheet under the exit scheme?
How to dispose the land in the company’s name (In reality the market value of land is two crores) and get the company closed?
If not how should the company proceed to get its name strike off?
Should it go for voluntary winding up?
Kinldy clarify.
regards
RAJA RAJESWARI
