Shell cos: Over 1 lakh directors identified for disqualification

| Updated on: Sep 12, 2017
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The Corporate Affairs Ministry has taken the next step in its war against shell companies by identifying 1,06,578 directors of such companies for disqualification.

The Centre had recently de-recognised 2.10 lakh companies that were dormant and utilised for dubious transactions.

After de-recognition, the Finance Ministry had directed banks to restrict operations of bank accounts of such companies by their directors or authorised representatives.

The Ministry is further analysing the data of these companies, available with the Registrar of Companies, to identify the directors and the significant beneficial interests behind these companies.

The profiles of the directors, such as their background, antecedents and their role in the operation/functioning of these companies, are also being compiled in collaboration with enforcement agencies.

Money-laundering activities performed under the aegis of these companies are also under the scanner.

Professionals — chartered accountants, company secretaries and cost accountants — associated with such defaulting companies involved in illegal activities have been identified in certain cases and action by professional institutes such as ICAI, ICSI and ICoAI is also being monitored, an official release said.

Published on January 10, 2018

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