Companies accounts restricted

The government on Tuesday directed banks to restrict operation of bank accounts of over 2 lakh ‘struck off’ companies.

Existing directors and authorized signatories of such struck off companies will now become ex-directors or ex-authorized signatories, the Finance Ministry said.

These individuals will not be able to operate bank accounts till such companies are legally restored by an order of National Company Law Tribunal (NCLT).

The restoration, as and when it happens will be reflected by change in the status of the company from ‘struck off’ to ‘active’.