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Based on non-filing of Financial Statements (FS) consecutively for two years or more, Shell Companies were identified and after following due process of law as provided under Section 248 of the Act, 2013 read with theCompanies (Removal of Names of Companies from the Register of Companies) Rules, 2016, there are 3,82,875number ofCompanies were struck off during the last three years up to financial year ended 2020. Further, no companies have been struck off during 2020-21. This was stated by Sh
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FAQ :
A total of 382,875 companies were struck off in the three years up to the financial year ended 2020.
Companies were struck off mainly for non-filing of Financial Statements for two consecutive years or more, identifying them as 'Shell Companies'.
The Companies Act, 2013 does not define 'Shell Company'. However, it generally refers to a company without active business operations or significant assets, sometimes used for illegal purposes like tax evasion or money laundering.
SEBI advised stock exchanges to place identified listed companies under surveillance, restrict share transfers by promoters and directors, and verify their credentials.
Out of 331 suspected shell companies identified, 221 were listed on nationwide stock exchanges.
Yes, the Ministry of Corporate Affairs (MCA) ordered investigations against 68 of the suspected shell companies.
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