A total of 49 private companies of NWFP has taken benefit of the Company Easy Exit Scheme (CEES), 2007 launched by the Security and Exchange Commission of Pakistan (SECP) for de-registration of the companies from the record of the Commission in the country.
The scheme provided an opportunity to dormant unlisted public and private companies having no assets or liabilities and not carrying business to take advantage of the exit route and get their names struck off the register of companies after fulfilment of specified formalities.
The scheme was initially launched for a period of four months commencing from July 15 to November 15. On the expiry of the period, it was once extended for another period of two-month and 15 days to end January 31, 2008. For first time, the scheme was introduced by the Commission in 2002 and again in 2004. The scheme and its easy to follow procedure attracted for de-registration of 2,860 companies in the first phase and 1,519 in the second phase in the country.
Under the scheme, the companies carrying no business nor having any assets or liabilities were allowed to furnish the applications to get their names struck off the register of companies. However, the companies incorporated under any licensing regime or with permission or approval of any authority shall not be allowed to avail the exit mechanism.
The applicants are required to pay a fee of Rs 3,500 for de-registration of a private limited and Rs 5,000 fee for non-listed public companies. The applications are also required the support of the resolution of the board of directors or a resolution of the shareholders of the company concerned.
"The establishment of a company is easy but its abolition is very difficult and become a liability on the management. Therefore, the Commission gives easy out for the management to wrap up the company," Mudasir Rahim, Registrar, Company Registration Office (CRO), Peshawar told Business Recorder on contact. The Commission provides easy exit to dormant companies under section 439 of the Companies Ordinance, 1984, he added. According to the scheme, one of the directors preferably the chief executive of the company shall also be required to furnish a declaration duly verified by an affidavit administered before an oath commissioner that the company has no assets or liabilities and that it is not carrying on any business or any operation and that it has no liabilities outstanding in relation to any loan obtained from the banks or any financial institution, taxes, utility charges, or any obligations towards government departments or private parties.