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Govt identifies over 1 lakh directors of shell companies for disqualification

Govt identifies over 1 lakh directors of shell companies for disqualification
More than 1,00,000 directors in firms identified as defaulters stare at disqualification as the government continues its crackdown against shell companies.

The move follows the cancellation of registration of around 210,000 companies and restrictions on the operation of bank accounts by their directors.

The government is now investigating these companies for money laundering activities while also drawing up detailed profiles of their directors in collaboration with the enforcement agencies, an official statement said on Tuesday.

"We are identifying the defaulting directors of these shell companies," the statement quoted minister of state for corporate affairs PP Chaudhary as saying.

"This whole exercise shall go a long way in creating an atmosphere of confidence and faith in the system, paving the way for ease of doing business in India."

Under Section 164 of the Companies Act, 2013, a director in a company that has not filed financial statements or annual returns for three years in a row will not be eligible for reappointment as a director in that or any other company for five years.

The Hindustan times ,New Delhi, 20th september 2017

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