Shell in Glitch

The Government of India has made public names of 55,000 directors of shell companies across the country. Surprisingly Northeastern states have also been featured in the list released by the Union Corporate Affairs Ministry. It has brought “Name and Shame” where multiple names from the Northeast, India have come out in the exercise by the Centre in the racket involving shell companies. Disqualified under Section 164 (2)(A) of the Companies Act, 2013, these directors/promoters cannot float new companies or be appointed in any other company in similar capacity.

On 12th September 2017, Ministry of Corporate Affairs statement revealed that 1.06 lakh directors of ‘shell companies’ have been identified for disqualification under the relevant provisions of the Companies Act, 2013. Government has taken an initiative to break down the network of ‘shell companies’ to fight against black money/money laundering.