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CS Executive · Company Law and Practice · Legal Status and Types of Registered Companies

Bharat Ventures Ltd has not filed financial statements or annual returns for two financial years consecutively. It has made no application for dormant status. What does section 455 provide?

The Registrar shall issue a notice to the company and enter its name in the register of dormant companies. This applies where financial statements or annual returns were not filed for two consecutive financial years, even without any application by the company.

  1. AThe Registrar must issue a notice and enter its name in the register of dormant companiesCorrect
  2. BThe Registrar must strike off the company from the register of companies at once
  3. CThe Tribunal must order its winding up as an unregistered company
  4. DNothing happens unless a creditor petitions the Registrar

Explanation

Section 455(4) provides that for a company that has not filed financial statements or annual returns for two consecutive financial years, the Registrar shall issue a notice and enter its name in the register maintained for dormant companies. Immediate striking off or winding up is not what this sub-section provides.

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