More than 1 lakh directors at shell firms identified for disqualification: 

More than 1 lakh directors at shell firms identified for disqualification: 

Context

• The Ministry of Corporate Affairs (MoCA) has identified 1.06 lakh directors of ‘shell companies’ for disqualification under the relevant provisions of the Companies Act, 2013.

Why is it done?

• To break the network of ‘shell companies’ and the fight against black money/money laundering activities.
• The move is pursuant to the MoCA’s action of cancellation of registration of around 2.10 lakh defaulting companies.
• It is done to restrict operations of bank accounts of such companies by the directors of such companies or their authorized representatives.

Who all are getting monitored?

• Professionals including Chartered Accountants, Company Secretaries and Cost Accountants associated with such defaulting firms and involved in illegal activities have been identified in certain cases.
• The action by professional institutes such as ICAI, ICSI and ICoAI is being monitored.