Move to strike off the ineffective Private Companies would promote Corporate Discipline: PHD Chamber

No. PR- 250

March 9, 2021

New Delhi

 

Move to strike off the ineffective Private Companies would promote Corporate Discipline: PHD Chamber

We appreciate the Ministry of Corporate Affairs’ move to strike off 10,113 private companies to make businesses more effective and participative in the growth and development of Indian economy, said Mr Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry.

The striking of 10,113 companies under the section 248 (2) of the Companies Act is a very calibrated decision undertaken by the Government. It will prevent unnecessarily increase in number of non-viable business units in India, not carrying out  any business operations for a period of two immediately preceding financial years,  said Mr. Aggarwal

The Ministry of Corporate Affairs has released a press statement on 8th March 2021 regarding striking off 10,113 companies between April 2020 and February 2021 by invoking the provisions of section 248 (2) of the Act which are not carrying on any business or operation for a period of two immediately preceding financial years and have not made any application within such period for obtaining the status of dormant company under section 455 of the Act and after following the due process of the law.

Going forward, the exclusion of such companies would go a long way to efficiently assess the performance of private sector and promote corporate discipline in them, said Mr. Sanjay Aggarwal.

Ends

Media Division

PHD Chamber of Commerce and Industry