Skip to content

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

Kalinga Ventures Ltd has been carrying on no business or operation for the two immediately preceding financial years and has not applied for dormant status. The Registrar has reasonable cause to believe this. Which statement is correct?

The Registrar may send a notice to the company and all its directors of the intention to remove the name, asking for representations within thirty days. Section 248(1)(c) applies to a company with no business for two preceding financial years that has not applied for dormant status.

  1. AThe Registrar may send a notice to the company and all directors proposing removal of the name, inviting representations within thirty daysCorrect
  2. BThe Registrar may strike off the name at once without any notice
  3. CThe company stands dissolved automatically after two years of inactivity
  4. DThe Registrar must grant dormant status on his own motion

Explanation

Section 248(1)(c) covers a company not carrying on business for two immediately preceding financial years that has not applied for dormant status under section 455. The Registrar sends a notice to the company and all directors, seeking representations within thirty days. Striking off follows only after the notice period under section 248(5), so immediate removal is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Legal Status and Types of Registered Companies shows your real accuracy, how long you take and where you lose marks.

Practise Legal Status and Types of Registered CompaniesFree diagnostic mock

More Legal Status and Types of Registered Companies questions