Directors of deregistered shelcompanies can be jailed up to 10 years if they are found siphoning off money, said the Ministry of Corporate Affairs on Wednesday.
The move follows the government’s announcement on Tuesday September 5 that it had frozen the accounts of 2.09 lakh “struck off” companies as they had not carried out any business operations in the past two years. As a result of their deregistration directors and authorised signatories of these companies no longer had the power to operate company bank accounts.
In a further warning on Wednesday the ministry said in a media statement that if the directors or signatories are found to have siphoned off money before or after the deregistrations they will face penalties and jail time as punishment.
The government has also decided to bar directors of those companies that have not filed returns for three or more years form any further directorial positions.
As carried in ani on 9/8/2017