Shell cos directors to face up to five-year disqualification

June 04, 2017 18:45

Directors of companies that have not been carrying out business for a long time are set to be disqualified from holding directorship in any registered firm for up to five years, as part of the government's intensified efforts against the black money menace.

Shell companies are dubious entities that are generally used for laundering illegal wealth.

With nearly three lakh companies already under the scanner, the government is preparing to initiate stringent steps against the erring entities, including striking off their names and taking action against directors concerned,

according to sources.

Apart from serving show cause notices to companies that have been not submitting their financial statements under the Companies Act for a long time, the Corporate Affairs Ministry is in the process of preparing a database of shell firms which would further help in curbing illegal business activities.

Sources said that action would be taken against the directors of the defaulting companies including, disqualification of directors under the provisions of the Companies Act, 2013.

As per Section 164 of the Act -- which is implemented by the ministry -- a person shall not be eligible to hold directorship on various grounds including that he was a director of a company that has not filed financial statements or annual returns for continuous three financial years.

« Back to LIVE

TOP STORIES

Why didn't chowkidar...: Kharge on Modi's Adani-Ambani charge

Alleging that the BJP would end democracy if it was not voted out, Kharge said it was because of this democracy that a tea-seller's son could become the prime minister of India and he, the son of a labourer, could become the president of...

Another Indian arrested in Canada in Nijjar murder case

Amardeep Singh, 22, a resident of Brampton, Surrey, and Abbotsford areas of Canada, has been charged with first-degree murder and conspiracy to commit murder.

Play-off berth sealed, KKR's winning mantra revealed!

The key to Kolkata Knight Riders success this season lies in their players' newfound ability to support each other through highs and lows, something that was "missing" over the past two years, feels the team's vice-captain Nitish Rana.

Ananya, Suhana, AbRam Cheer KKR!

Co-owner Shah Rukh Khan was not present at the Eden Gardens but his kids Suhana and AbRam cheered for the Knights from the stands.

'Mummy Was Truly Our Universe'

To share your Mother's Day story with us, please mail us at getahead@rediff.co.in (subject: Mother's Day) along with your name, the place where you live, your mother's name and picture and your message about your mom.