FAQs ROC NOTICE U/S 248 :As PIB Report, during F.Y. 2017-18 ROCs identified and removed from the ROC the names of 2,26,166 companies; 3,09,619 directors disqualified. 2nd drive to be launched during the current financial year 2018-19; a total 2, 25,910 companies identified for being struck-off.

Many ROCs has issued notices in form STK-5 in the month of May and June, 2018 u/s 248(4) of Companies Act, 2013. Notice has been sent to those Companies, which according to ROC have not been carrying on any business or operation for a period of two immediately preceding financial years. The main thrust of this editorial is TO DISCUSS THE FAQS, FOOD FOR THOUGHT FOR THE SAME
FAQs ROC NOTICE U/S 248
A. If Company doesnt reply ROC Notice what are the consequences of same
I. Whether ROC can strike off the status of Company
As per Notice of ROC u/s 248(1), this notice is first step toward struck off of Company. If Company fails to reply such notice within 30 days of publication of notice (i.e. 17th July, 2018 in case of publication of Delhi ROC) ROC shall struck off the name of Company in its records.
II. Whether Director shall be disqualified
As per Section 164(2) if a company fails to file its Financial Statement or Annual Return for continuous 3 financial years, in such case Directors shall be disqualified.
In this case, if Company has fails to file financial statement and annual return for continue 3 financial year then directors shall be disqualified, if default is only for 2 years then directors shall not be disqualified.
III. Personal Liability Director/ Manager/ Officer/ Members.
As per Section 248(&) The liability, if any, of every director, manager or other officer who was exercising any power of management, and of every member of the company dissolved under sub-section (5), shall continue and may be enforced if the company had not been dissolved
In general words, liability of Directors, manager, other officers and Members of the Company shall be continue even after struck off of Company.
Hence, one can opine that they shall be personally liable for all the statutory and other liabilities of the Company. (Eg. Statutory liability like: Payment of Roc Fees, payment of income tax liability, penalty for non filing of financial statements and annual returns etc.)
IV. Cessation of Bank Account of Company
If a Company struck off in the record of ROC. Then ROC simultaneously send letter to Banks for cessation of Bank account of Company in the entire Bank.
Earlier when roc struck off approx 2.5 lakh companies has taken the same action”
V. Companies shall not be able to carry on business, sale/ purchase any assets, bank transactions.
If a Company once struck off in the record of ROC, then such Company:

• Cant conduct any business activity in the Company. Company cant carry on business. (i) Because due to cessation of Bank account they cant do any transactions. (ii) As Company struck off promoters cant sign any invoice or other documents on behalf of the Company.
• If Company having any assets then Company cant sell / lease such property. Because Company cant accept any amount from such transaction due to cessation of Bank Account.

B. What shall be impact of disqualification of Director on other companies in which they are continuing as Directors
Detailed answer of this question has been already covered in the below mentioned article. (In simple word disqualified director automatically vacant office from all other companies)
Impact of Disqualification on directors- struck off companies
C. Everything about provision of Disqualification of Director
Detailed answer about disqualification of director covering section 164 and 167 can be read on the below mentioned link: