Centre for Processing Accelerated Corporate Exit (C-PACE)
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- The Ministry of Corporate Affairs (MCA) has established of the Centre for Processing Accelerated Corporate Exit (C-PACE).
- Finance Minister Nirmala Sitharaman proposed the establishment of a Centre for Processing Accelerated Corporate Exit (C-PACE) in the Union Budget 2022-23. This will implement an expedited corporate exit process in 2022-23 fiscal.
- C-PACE has been established as part of several measures taken to further improve the ease of doing business and ease of exit for companies.
- The centre is situated at the Indian Institute of Corporate Affairs (IICA) in Manesar, Haryana.
- The center was founded by the Corporate Affairs Ministry.
- The C-PACE institution, established under sub-section (1) of section 396, shall be in operation through the Registrar of Companies (RoC) for the purposes of exercising functional jurisdiction of processing and disposal of applications
- Several IT-based systems have been established for accelerated registration of new companies.
- The government has established C-PACE:
- to facilitate the faster voluntary winding up of companies, reducing the current timeline of two years to less than six months.
- to facilitate the quick and procedure-bound deletion of businesses from public records and to provide stakeholders with more usable data.
- C-PACE will help to reduce the stress on the Registry along with keeping the registry clean besides availability of more meaningful data to the stakeholders.
- The C-PACE will also benefit the stakeholders by providing hassle-free filing, timely and process-bound striking off their company’s names from the register.
Q. Consider the following statements:
1. Centre for Processing Accelerated Corporate Exit (C-PACE) was founded by the Corporate Affairs Ministry.
2. C-PACE will facilitate faster voluntary winding up of companies, reducing the current timeline of two years to less than two months.
Which of the above statements is/are incorrect?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Correct Answer: b