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vinti | Aug 9, 2022 | Views 2

Over 4.32 lakhs Companies Struck off Down During last Five Years

Over 4.32 lakhs Companies Struck off Down During last Five Years

If a company has not conducted any business or operations for the two most recent financial years and has not applied for the designation of a “dormant company” under section 455 of the Act during that time, its name may be removed from the Register of Companies pursuant to section 248 of the Companies Act, 2013 (the Act). In a written response to a question in the Lok Sabha today, Union Minister of State for Corporate Affairs Shri Rao Inderjit Singh made this claim.

The process of removing a company’s name from the Register of Firms is ongoing, and over the past five years, 4,32,796 companies have had their names removed. The year-by-year breakdown is as follows:

According to the Minister, section 59 of the 2016 Insolvency and Bankruptcy Code, titled “Voluntary liquidation for corporate entities,” does not grant the authority to make rules. According to the Minister, a dormant company is covered by the requirements of section 455 of the Act.

The number of companies that have been declared dormant under such laws over the past five years is as follows:

The Department for Promotion of Industry and Internal Trade has informed us that no such action has been taken to address industrial illness.

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