Thursday, July 12, 2012

Shifting of Registered Office - Better to do after a month; save a couple of months!


If you are about to start compliance formalities for shifting of registered office from one state to another in India, you would be better by waiting for a month as 12th August 2012 will be the beginning of these confirmation powers being vested on the Central Government [CG] and Company Law Board [CLB] will no longer have the powers to do anything with respect to shifting of registered office. Presently under the Companies Act, 1956, if a company having its registered office in one State intends to move it to another State, such a move requires, apart from a special resolution [a resolution of shareholders enjoying three fourths of the votes polled], a confirmation from CLB. For this purpose, petition should be filed in accordance with CLB Regulations. This process will take normally about 3 to 4 months. However with the 10th July 2012 notifications of CG [to be precise, the Ministry of Corporate Affairs], the power to confirm the shifting of registered office will get transferred to Regional Directors. Wait and Watch!

KSR

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