Business Today

Shell Shocked

Registration Cancellation of over 2 lakh inactive companies is a display of the government's cavalier attitude

Sanjay arora (name changed) looks hassled by the situation he finds himself in. Hes a director in an inactive company whose registration has been cancelled recently by the registrar of companies (RoC). We are sitting in a coffee shop in the bustling office complex of Nehru Place. Arora, between many phone calls, painstakingly refers to relevant sections of the Companies Act, 2013 to explain why the government's decision to cancel registration of several 'shell' companies and disqualify their directors for five years is a travesty of the law of natural justice.

Arora, investor director in an e commerce company facing the music, is also a director of another company. The government action has led to him being barred from being a director of any other company for five years. Now Arora says

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