225910 companies identified for being struck-off under Companies Act | FY 18-19

225910 companies identified for being struck-off under Companies Act | FY 18-19

• Task Force on Shell Companies takes pro-active and coordinated steps to check the menace of shell companies
• Compilation of a database of shell companies by SFIO
• During Financial Year 2017-18 ROCs identified and removed from the register of companies the names of 2,26,166 companies; 3,09,619 directors disqualified
• A total of 13,993 companies benefitted from Condonation of Delay Scheme, 2018
• 2nd drive to be launched during the current Financial Year 2018-19 ; a total of 2,25,910 companies identified for being struck-off under section 248 of the Companies Act

The Task Force on Shell Companies has met 8 times since its constitution and has taken pro-active and coordinated steps to check the menace of shell companies.The Task Force was set up in February, 2017 by the Prime Ministers Office under the joint Chairmanship of the Revenue Secretary and Secretary, MCA with a mandate to check in a systematic way, through a coordinated multi-agency approach, the menace of companies indulging in illegal activities including facilitation of tax evasion and commonly referred to as Shell Companies. Department of Financial Services, CBDT, CBEC, CBI, ED, SFIO, FIU-IND, RBI, SEBI, DG GSTI and DG-CEIB are its Members. The major achievements of the Task Force include the compilation of a database of shell companies by SFIO.This database, as on date, comprises of 3 lists, viz theConfirmed List, Derived List and Suspect List.The Confirmed Listhas a total of 16,537 confirmed shell companies on the basis of the information received from the various Law Enforcement Agencies of the companies found to be involved in illegal activities. The Derived List has 16,739 companies identified on the basis of 100% common directorships with the confirmed shell companies. The Suspect List has 80,670 suspected shell companies and has been drawn up by SFIO using certain Red Flag Indicators. The Task Force has identified certain Red Flag Indicators, which will be used to identify more shell companies. In a drive carried out under the supervision of the Ministry of Corporate Affairsin theFinancial Year 2017-18theRegistrars of Companies (ROCs) identified and removed from the register of companies under Section 248 of the Companies Act, 2013 the names of 2,26,166 companies, which had not filed their Financial Statements or Annual Returns for a continuous period of two or more financial years.As many as 3,09,619 directors were also disqualified u/s.164(2)(a) read with Section 167(1) of the Companies Act, 2013 for non-filing of Financial Statements or Annual Returns for a continuous period of immediately preceding 3 financial years (2013-14, 2014-15 & 2015-16). With the concerted efforts of the Ministry of Corporate Affairs, Department of Financial Services and Indian Banks Association the ex- directors / authorized signatories of the struck-off companies have been restricted from operating the bank accounts of these companies and they cannot withdraw any amount from these bank accounts, other than for specified purposes, till the company is restored u/s 252 of the Companies Act. You may Also Refer :HC directs MCA toExplain removal of companies from ROC

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Tags :225910 companies identified for being struck-off under Companies Act | FY 18-19, shell companies, companies identified for being struck-off, financial statements or annual returns, task force on shell companies, companies act