Govt makes names of 55,000 debarred directors public

New Delhi, September 19 

Intensifying its crackdown on shell companies and their operators, the government has made public names of over 55,000 directors linked to such firms to ensure they do not get associated with similar roles again.

More such names will be published soon as the government has already identified over 1.06 lakh directors for their association with shell firms which are either yet to commence any business or have failed to submit their financial statements or annual returns for three straight years.

More than two lakh such companies have already been struck off the register of the companies with various ROCs (Registrar of Companies).

As per the public notices issued by different ROCs, the names have been made public so far for more than 24,000 such shell companies from the Chennai region, as also of over 12,000 each from Ahmedabad and Ernakulam.

Besides, similar lists of thousands of directors have been made public by the ROCs in Cuttack, Goa and Shillong, among others. However, ROCs in Delhi, Mumbai and Chandigarh are yet to publish such lists.

Several of these names could also be linked to various political and corporate groups, but it could not be ascertained immediately as most of the lists only contain the names of directors and their DINs (Director Identification Numbers) and not any specific personal details. However, addresses were also mentioned for some.

The move came close on the heels of the corporate affairs ministry cancelling the registration of 2.09 lakh companies that have not been carrying out business activities for a long period.

Besides, banks have been asked to restrict operations of these companies’ bank accounts by their directors or their authorised representatives.

The names of these firms have been struck off under Section 248 of the Companies Act, which provides that the ROC may take action against them if a company has failed to commence its business within one year of its incorporation; or it has not carried out any business for two financial years or has failed to file its financial statements for three years.

In most cases, the directors whose names have been made public will not be eligible for any directorship till October 2021 as the action has been initiated with effect from November 2016. — PTI

Crackdown on shell companies 

• The government has identified over 1.06 lakh directors for their association with shell firms which are either yet to commence any business or have failed to submit their financial statements or annual returns
• So far, names from over 24,000 shell companies from the Chennai region and over 12,000 each from Ahmedabad and Ernakulam have been made public
• The move came close on the heels of the Corporate Affairs Ministry cancelling the registration of 2.09 lakh companies that have not been carrying out business activities for a long period

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