Assets of sham Cos cannot be trasnferred; Centre informs States
Published: Dec 23, 2017
By TIOLCORPLAWS News Service
NEW DELHI, DEC 23, 2017: The Minister of State for Law & Justice & Corporate Affairs, Mr P P Chaudhary, while replying to a question in the Lok Sabha yesterday, said that the Central Government has intimated all the States and UTs about the Govt's decision to strike off bogus or shell companies listed on the register of the RoC. So far, over 2.24 lakh companies have faced the punitive sword of the MCA.
The Union of India has informed the States that their assets, properties etc. (i.e. all movable and immovable assets/properties) cannot be used, operated, transferred or alienated in any manner by the companies including by their ex-directors/authorised signatories, till they are restored by following the due process of law under Section 252 of the Act.