Section 311 of the Companies Act, 2013
Section 311 of the Companies Act, 2013 deals with the power of the Registrar to remove the name of a company from the register of companies in certain circumstances.
🔹 Section 311 – Power of Registrar to Remove Name of Company from Register of Companies
✅ Key Provisions:
📌 1. Removal of Name by Registrar:
The Registrar of Companies (RoC) may, on a petition by any interested person or on his own motion, apply to the Tribunal for the removal of the name of a company from the register of companies in the following cases:
Where the company has failed to commence business within one year of its incorporation,
Or where the company is not carrying on business or operation for two immediately preceding financial years and has not made any application for status change.
📌 2. Procedure:
The RoC files a petition to the Tribunal for removal of the company’s name.
The Tribunal may order removal of the name after giving an opportunity of hearing to the company and any interested parties.
📌 3. Consequence of Removal:
On removal of the company’s name, the company ceases to exist.
Its assets, if any, vest in the Central Government.
📌 4. Restoration:
The company or any interested person can apply to the Tribunal for restoration of the company’s name within 20 years from the date of removal.
The Tribunal may order restoration on such terms as it deems fit.
📝 Objective:
To clean the register of companies by removing inactive or dormant companies.
To prevent misuse of the corporate structure.
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