Issues at the Registrar of Companies
View(s):In the recent past the Registrar of Companies (ROC) office has become very inefficient and draconian. Certified copies of Form 1, Form 20, Form 40 and some other forms are very often required for the smooth running of a company. These were issued by the (ROC) without any problems sometime back. Unfortunately now it has become a very difficult task (to get these forms).
When the new company law came into effect most of the people who did company registrations including lawyers did not file Form 6 for the initial share issue since most of them were under the impression that shares were issued automatically when the registration of company is done, similar to earlier system. The ROC never sent any notice to remind or inform the people of the need to file such a form under the new system though it is their duty to do so. When forming a company people pay a fee and in turn they expect a service from the ROC. Recently, after keeping very silent all these years, the ROC has started to impose heavy penalties for not filing Form 6. Also they block issuing of any certified copies (even correctly filed ones) however urgent they may be until the files are updated. This type of harsh actions can discourage people to form companies in the future and seriously hamper the smooth functioning of companies and overall economy. Filing a form costs a mere Rs.1,100. However, the penalty for not filing or delay in filing such form runs into Rs.30,000- Rs. 40,000. The ROC has become a “find fault” and “thrive on penalty” institution.
I humbly appeal to the authorities concerned to correct the above situation as a matter of urgency.
S.L. Dissanayake
Kolonnawa.