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I agree that these sham companies should be shut down - it's a shame that those drafting the rules didn't (as they clearly should have) realise that they were drafted in such a lazy way that companies were always going to sieze the opportunity to generate additional business work by creating spin-off companies. It would have been easy to have stopped that from the outset.
There was a stage in the early part of this year where during the course of a week we encoutered about 10 phantom companies registered with MedCo with names such as IceCream Medical, Jellytots Medical etc. Disgraceful.