CS Executive · Company Law and Practice · Dormant Company
Dormant Co Ltd holds dormant status but fails to meet the requirements of section 455, such as filing prescribed documents and paying the annual fee. What is the consequence under that section?
The Registrar shall strike off the name of the dormant company from the register of dormant companies. This follows its failure to comply with section 455 requirements such as the minimum directors, prescribed filings and annual fee. It neither becomes active automatically nor stands dissolved.
- AThe Registrar shall strike off its name from the register of dormant companiesCorrect
- BThe company automatically becomes an active company
- CThe Registrar shall file a winding-up petition with the Tribunal
- DThe company is dissolved on the date of default
Explanation
Section 455(6) provides that the Registrar shall strike off the name of a dormant company from the register of dormant companies if it has failed to comply with the section's requirements. The section does not say the company automatically becomes active, since that needs an application under sub-section (5), nor does it provide for dissolution or winding up on default.
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