Another 2 lakh directors of defaulting companies disqualified

Earlier this month, The Registrar of Companies (RoC) struck off the names of more than 200,000 directors on the board of companies.

In a bid to improve corporate governance standards, the Ministry of Corporate Affairs has disqualified another two lakh directors, who were helming positions in the defaulting companies.
 
These companies have defaulted loans and have failed to file their financial returns for last three years.
 
These disqualified directors have also been barred from holding seats in other companies.
 
"By operation of law, these directors are disqualified but we have to see under what provision of law we can examine this. If we need to frame a rule we will do it," PP Chaudhary, Minister of State for Corporate Affairs told Economic Times.
 
Earlier this month, The Registrar of Companies (RoC) struck off the names of more than 200,000 directors on the board of companies.
 
The names of 2.1 lakh companies were de-registered after about 2.97 lakh companies received notice for failing to file returns and, also, not completing other formalities related to compliance.
 
Source: ET

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