Over 200,000 Defaulting Companies Deregistered

As per reports, the central government and the Ministry of Corporate Affairs (MCA) has deregistered over 200,000 companies from register of companies. Deregistration is another way of dissolving a company at the behest of regulatory action but in that case liability of directors or shareholders may remain open as long as for 20 years. This move was aimed at a pretext of such companies operating as shell companies. The Indian law does not define Shell Company but the Finance Ministry in the recent past had characterised potential shell companies. It is understood that, the objective behind this move could be one of the measures to curb the channelisation of black money. More information on this is as follows: