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SEP 13, 2017

MCA identifies over one lakh directors of shell companies for disqualification

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In the line with cancellation of registration of around 2.10 lakh defaulting companies and subsequent direction of the Ministry of Finance to banks to restrict operations of bank accounts of such companies by their directors or authorized representatives, the Ministry of Corporate Affairs has further identified 1,06,578 Directors for disqualification under Section 164(2)(a) of the Companies Act, 2013 as on 12th September, 2017.

MCA is further analyzing the data of these companies available with the Registrar of Companies to identify the Directors and the significant beneficial interests behind these companies. Profiles of Directors such as their background, antecedents and their role in the operations/functioning of these companies are also being compiled in collaboration with the enforcement agencies. The money laundering activities performed under the aegis of these companies are also under the scanner. The Professionals, Chartered Accountants/Company Secretaries/Cost Accountants associated with such defaulting Companies and involved in illegal activities have been identified in certain cases and the action by Professional Institutes such as ICAI, ICSI and ICoAI is also being monitored.