Govt Exposes Names Of Disqualified Directors Of Shell Companies; Sasikala, Oommen Chandy Among Those Listed

The Logical Indian Crew

September 19th, 2017 / 3:13 PM

Source: The Hindu | Image Credits: The News Minute, The New Indian Express

In a unique, first-of-its-kind “name-and shame” exercise, the Ministry of Corporate Affairs is making public the names of disqualified directors of struck-off shell companies as well as the names of those associated with these companies.

The Ministry was acting as per its September 12 statement that declared that  it had identified 1.06 lakh directors of shell companies for disqualification under the relevant provisions of the Companies Act, 2013.

According to The Hindu, the disqualified individuals in the lists are those who are or had been director in a company that has not filed financial statements or annual returns for any continuous period of three financial years. Such directors will not be eligible for re-appointment as a director in that company or for appointment in other companies for five years from the date of non-compliance.


Prominent names featured in the lists include former Kerala Chief Minister Oommen Chandy, Leader of Opposition in Kerala Assembly Ramesh Chennithala and jailed politician and former AIADMK leader Sasikala.

The maximum number of directorships that were listed was reportedly from Delhi (74,920). This was followed by

  • Mumbai (66,851),
  • Hyderabad (41,156),
  • Ernakulam (around 14,000),
  • Cuttack (13,383),
  • Ahmedabad (10,513),
  • Gwalior (9,628),
  • Pune (4,449),
  • Puducherry (1,605),
  • Himachal Pradesh (1,363),
  • Coimbatore (1,299),
  • Shillong (1,290) and
  • Chhattisgarh (889).

Earlier this month, the Ministry of Corporate Affairs had cancelled the registration of 2,09,032 shell companies.

The Department of Financial Services and the Ministry of Finance have also reportedly directed all banks to restrict operations of bank accounts of such companies by the Directors of such companies or their authorised representatives.

The Ministry stated that it has also decided to track down the beneficial owners of suspected shell companies and take penal action against those who divert funds from companies that are struck off the records of the Registrar of Companies (RoC).

The decisions had been taken with the intention of improving corporate governance and checking financial irregularities through the use of shell companies.


Also Read: 3 Lakh Directors Of Shell Companies Blacklisted By Ministry Of Corporate Affairs


Contributors

Written by :

Edited by :

Share your thoughts..

Related Stories

Caught On Camera Asking Money To Peddle Hindutva; Cobrapost Exposes The Newspapers You Read

Delhi HC Restores Membership Of 20 AAP MLAs Disqualified By Election Commission

Paresh Rawal Tweet Exposes Party’s Social Media Tactic: Shares Google Doc To Trend #JhoothiCongress

Disqualified AAP MLAs Don’t Have Right To Oral Hearings, Says Election Commission

3 Lakh Directors Of Shell Companies Blacklisted By Ministry Of Corporate Affairs

Shell Video

The Hypocrisy Of Oil Companies: Shell Knew The Dangers Of Climate Change Way Back In 1991

Latest on The Logical Indian

Exclusive

South Delhi: Resident Welfare Association Claim That Public Parks Are Being Used For Political Activities

News

Ajit Doval’s Son Files Defamation Complaint Against Jairam Ramesh & Caravan Magazine

News

India’s Inequality: Country’s Richest 1% Grew Their Wealth By 39% In 2018, Says Oxfam Report

Get Inspired

All Women Assam Rifles Contingent To Script History, Will March Past Rajpath This Republic Day For The First Time

News

Mukesh Ambani Announces Plan To Take On Online Retail Giants Amazon And Flipkart

Awareness

With USA Looking To Tighten Visa Rules, What Lies Ahead For Spouses Of H-1B Holders?

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.