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CS Executive · Company Law and Practice · Dormant Company

Anand Projects Ltd has carried on no business for two immediately preceding financial years and has not applied for dormant status within that period. Under section 248, what can the Registrar do if he has reasonable cause to believe this?

The Registrar can send a notice to the company and all its directors of his intention to remove the name from the register, asking for representations with documents within thirty days. Striking off cannot be done at once; it follows only after this notice period.

  1. AStrike off the name at once without any notice
  2. BSend a notice to the company and all its directors of his intention to remove the name, asking for representations within thirty daysCorrect
  3. CConvert the company to a dormant company on his own motion
  4. DDirect the directors to be disqualified for five years without notice

Explanation

Section 248(1)(c) covers a company not carrying on business for two immediately preceding financial years and not applying for dormant status. The Registrar must send a notice to the company and all directors of his intention to remove its name, seeking representations within thirty days. Striking off comes later under sub-section (5), only after the notice period, and the section does not provide conversion to dormant status.

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