Centre for Processing Accelerated Corporate Exit (C-PACE)

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Context

• The Ministry of Corporate Affairs (MCA) has established of the Centre for Processing Accelerated Corporate Exit (C-PACE). 

C-PACE

Background

• 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.

Location

• The centre is situated at the Indian Institute of Corporate Affairs (IICA) in Manesar, Haryana.

Ministry

• The center was founded by the Corporate Affairs Ministry.

Operation

• 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

Mandate

• 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.

Significance

• 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.

PRACTICE QUESTION 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

https://economictimes.indiatimes.com/news/economy/policy/govt-sets-up-centre-for-processing-accelerated-corporate-exit/articleshow/100210714.cms