September 12 2017
New Delhi: Walking the talk on improving statutory compliance by unlisted companies and to check abuse of the corporate structure for money laundering, the government on Tuesday identified over 100,000 directors of suspected shell companies to bar them from the boards of other firms.
A ministry of corporate affairs statement said it had zeroed in on 106,578 directors for disqualification as of 12 September for associating with companies that had not filed financial statements or annual returns for three straight years.
Detailed investigations will follow to determine whether these directors are proxies representing the beneficial interests of people who use shell companies to evade taxes or to launder money. Businesses evading taxes and promoters diverting funds from listed or unlisted companies with public interest systematically use shell companies for fudging books.