Recently, the Government took two actions which appear to be arbitrary on the face of it:
1. removal of inactive companies from the company register
2. disqaualification of directors of such companies.
Would like to know the legal basis and the relevan law/rules under which such action can be taken by govt.
It will be appreciated that many companies are formed by business groups with certain new areas of activities in mind. If the new ideas do not materialise, the companies formed are not normally dissolved even if there is no business under the names.
How far fair it is to remove the names from the Register and more so, to disqualify directors of such companies just because the companies did not do any business.
Kindly enlighten.
thanks
ramu