Dear Professional Colleagues,
As we all are aware that in September, 2017 the government of India steps up its fight against the black money. The Government of India with the help of Ministry of Finance, pushes ahead with the efforts to weed out shell companies (a term used for entities that have not been carrying out business for long and are allegedly used as conduit for illegal fund flows) has taken strict action against the shell Companies.
1. The first action was against those Companies that prima facie appears to be non-functional (also called “Shell Companies”). On 5th September, 2017 around 208,800 Companies were struck off from the data base of the Registrar of Companies (RoC);
2. The Ministry of Finance directed the branches of all the banks of those companies to restrict/stop the operation of the bank accounts of all such companies by their directors and authorized representatives;
3. Third step involves action against the defaulting Directors of those all Companies that did not filed their Annual returns or financial statements for the past three years. After MCA direction around 3,09,614 directors has been barred to continue on the board of Directors of any company in which they are Directors for the next five years. After this action the Digital signatures of all the disqualified directors can’t be used in filing of any document like annual reports and Balance sheet documents will not to be accepted by concerned RoC with which Company is registered.
In this Article we will try to discuss on the option which are available to an Individual Director (i.e. directors who has been barred to continue on the board of Directors of any company for the next five years) to remove his disqualification.
Please find attached the detailed article.