CS Executive · Company Law and Practice · Dormant Company
Anand Holdings Ltd, a dormant company, wishes to resume business operations. Under Section 455, how can it become an active company?
The company must make an application to become active, accompanied by the prescribed documents and fee. Section 455(5) provides this route; the status does not end automatically with time or by a mere internal Board resolution.
- AAutomatically after two years of dormancy
- BBy passing a Board resolution only
- CBy making an application with the prescribed documents and feeCorrect
- DBy an order of the Registrar of its own motion without any application
Explanation
Section 455(5) provides that a dormant company may become active on an application made for the purpose, accompanied by such documents and fee as prescribed. Dormancy does not lapse automatically, and a Board resolution alone is insufficient.
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