Disqualification of directors to hurt India Inc: Legal experts

They liken the move to the barring of 331 suspected shell firms, without following principles of natural justice

The government’s decision to disqualify over 100,000 individuals from taking up directorship at listed companies is likely to disturb the functioning of boards and hurt business sentiment, according to legal experts.
 
Earlier this month, the Ministry of Corporate Affairs (MCA) had decided to blacklist 300,000 individuals — allegedly associated with shell or non-compliant companies — from taking up board positions. Acting on the MCA’s decision, the National Stock Exchange (NSE) had sent out letters to some companies concerned, asking them whether the disqualified directors should continue on their boards.
 
While most of the blacklisted individuals were associated with