MCA

Directors of struck off companies can not incorporate companies, apply for name availability

Directors of struck off companies can not incorporate companies, make application for name availability

After directions of Department of Financial Services to bank to freeze bank accounts of more than 2 lakhs companies that have been struck off by the RoC, MCA has issued an advisory to the Directors of such companies for refraining from the following activities:

Directors disqualified under Section 164(2)(a) of the Companies Act, 2013 and who are associated with struck off companies (Section 248) are advised not to make any application for Name Availability (INC-1), Incorporation of Companies (INC-7/SPICe-INC-32/URC-1/INC-12). It has been further stated that any person disqualified  under section 164(2) of the Companies Act, 2013 is advised not to  act as director during the period  of the disqualification and not to file any document or application with MCA as the same shall be summarily  rejected by the Central Registration Centre(CRC).

However, this shall be without prejudice to the  liability of the said person for violation of section 164(2) read with section 167 of the Act including the action under section 448 r/w 447 of the wherever warranted.

Further, attention is drawn to the provisions of Section 7(5) and 7(6) which, inter-alia, provides that furnishing of any false or incorrect particulars of any information or suppression of any material information shall attract punishment for fraud under Section 447.

Attention is also drawn to the provisions of Section 448 and 449 which provide for punishment for false statement and punishment for false evidence respectively.

 

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