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CS Executive · Company Law and Practice · Dormant Company

Arjun Pvt Ltd, an inactive company, paid ROC filing fees, made payments to meet statutory requirements, and paid office rent and record maintenance costs in the last two years. It also allotted shares to meet a requirement of the Act. It had no other transaction. Which statement is correct under section 455?

The company had no significant accounting transaction. Registrar fees, statutory payments, allotment of shares to meet the Act's requirements and office and record maintenance payments are all expressly excluded from the meaning of significant accounting transaction under section 455.

  1. AIt had no significant accounting transaction, because all these items are excluded from the definitionCorrect
  2. BIt had a significant accounting transaction because of the rent payments
  3. CIt had a significant accounting transaction because of the share allotment
  4. DIt had a significant accounting transaction because of the fee paid to the Registrar

Explanation

A significant accounting transaction excludes fees paid to the Registrar, payments to fulfil the Act or other laws, allotment of shares to fulfil the Act's requirements, and payments for maintaining the office and records. Every item listed falls within these exclusions, so none counts as significant.

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