In order the speed up the liquidation process for companies, the MCA has issued a circular stating that DIN of Directors of companies which have not filed Statement of Affairs, will be blocked. The MCA intends to give a month’s notice before initiating action of blocking the DIN.. The circular has been reproduced below:
GENERAL CIRCULAR No.56 /2011
F. No. 35/6/2011/Insolvency
Government of India
Ministry of Corporate Affairs
5th Floor, ‘A’ Wing, Shastri Bhavan,
Dr. R.P. Road, New Delhi-110001
Dated 28th July 2011
All Regional Directors
All Registrar of Companies
All Official Liquidators
Subject: Blocking of DIN consequent to non-filing of Statement of Affairs (SOA)
It has been observed that companies are not filing Statement of Affairs (SOA) in time in terms of section 454 of the Companies Act, 1956. This delays the process of liquidation considerably. It has, therefore, been decided to give the companies and the directors of such companies where winding up orders have been passed by the Hon’ble Court, one months notice to file SOA before action for blocking their DIN is initiated by the Ministry.
2. Official Liquidators shall furnish list of all such directors who have failed to furnish SOA (giving their details) to the Ministry on 3rd working day of every month starting from 5th September, 2011 by e-mail to respective RD, ROC, e-Governance Cell and Insolvency Section of this Ministry.
3. MCA 21 cell in the Ministry would block DIN of all such directors on getting information after approval of the competent authority concerned and intimate the same to all.