Shell company links: 800 firms feel the heat on directors' disqualification

Exchanges have sent or are about to send notices to 800 companies seeking explanation on how individuals disqualified by MCA should continue onExchanges have sent or are about to send notices to 800 companies seeking explanation on how i their boards

More companies are facing the heat for having “disqualified directors” on their boards.

According to reports, exchanges have shot or are in the process of issuing notices to as many as 800 companies seeking explanation on how individuals disqualified by the Ministry of Corporate Affairs (MCA) should continue on their boards.

The MCA has disqualified over 100,000 individuals from taking directorship at listed companies for their alleged association with “suspected shell companies” or companies that have failed to comply with regulatory filing such as submitting financial statements or annual returns. Notices are being sent to companies which may have some