Government Warning to Directors of shell Companies 3 lakh directors out of disqualification

Directors of recognized companies or authorized signatories have been warned that if they attempt to channel funds from their respective bank accounts, they will be imprisoned for up to ten years. For three years, those who are not directors of companies that are not filing returns will be prohibited from entering any institution. In some cases, Chartered accountants, company secretaries, and cash accountants have also been identified with the company. It is also said that the relevant professional bodies were asked to take action against them. The Corporate Affairs Ministry said that efforts are being made to identify more and more companies and get them out of the original beneficiaries. The company’s registrars have canceled the recognition of the 2.09 lakh companies that have long been seen as non-performing as part of the fight against black money, The next step is that directors or authorized representatives of such companies warned that they would have to be jailed for six months from a maximum of 10 years if they attempted to move the money out of those companies’ accounts. The latest statement warned that the target of breaking the interests of the people would be punished with less than three years of imprisonment, including a jail term of three years. The government has already issued a ruling to ensure that those who have the authority to sign a bank transaction are not obliged to withdraw the accounts. Still, it has warned that it does not tolerate these orders. These decisions were taken at a review meeting chaired by Deputy Chairman of the Corporate Affairs Department, PB Chowdhury. Directors of companies not filing for three years or more years are expected to be volunteered due to the disqualification of directors in any other organization and this will result in disqualification of two to three lakh directors. It is said that the process of identifying the beneficiaries of such companies has already begun. Their background, the promotion, the management of their respective companies and their role in the performance of the coupe are being co-chaired by Enforcement companies 

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