Disrobing Shell Companies Combating Maliciousness through Corporate Governance

  • Riya Gupta and Divita Vashisht
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  • Riya Gupta

    Student at O.P. Jindal Global University, Sonipat, India

  • Divita Vashisht

    Student at O.P. Jindal Global University, Sonipat, India

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The term shell company is derived from a shell which has an outer covering but nothing inside. The terminology of “nothing inside” signifies the fact that it doesn’t have tangible operations. Shell corporations could be viewed as a planned system set up to engage in dishonest acts. The expansion of shell firms in the market is no longer surprising. What’s shocking is that how quickly these corporations are mushrooming across the globe. Nonetheless, such businesses are legitimate till the time their illegal actions are concealed and unchallenged. Our paper will outline the efforts adopted by the government to eliminate shell corporations in attempt to regulate illegal financial activities, facilitate clarity, and promote overall improved governance practices. In addition, we tried to cover the law surrounding the shell firms. Part I discusses about the introduction to shell firms and the motive behind setting up these companies. Part II deals with the steps initiated by the Ministry of Corporate Affairs by “Operation Clean Money”. Part III represents our analysis and certain suggestions we could develop in our minds through the research.


Research Paper


International Journal of Law Management and Humanities, Volume 6, Issue 4, Page 629 - 640

DOI: https://doij.org/10.10000/IJLMH.115471

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