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CS Executive · Company Law and Practice · Dormant Company

Kaveri Traders Ltd has not filed its financial statements or annual returns for two financial years consecutively, and has not applied for dormant status. What does the Companies Act, 2013 require the Registrar to do?

The Registrar must issue a notice to the company and enter its name in the register maintained for dormant companies. This applies where financial statements or annual returns have not been filed for two consecutive financial years, even without an application from the company.

  1. AIssue a notice to the company and enter its name in the register of dormant companiesCorrect
  2. BImmediately strike off the name and treat the company as dissolved
  3. CRefer the matter to the Tribunal for winding up
  4. DWait for an application from the company before taking any step

Explanation

Under section 455(4), where a company has not filed financial statements or annual returns for two consecutive financial years, the Registrar shall issue a notice to it and enter its name in the register maintained for dormant companies. Immediate striking off is not the prescribed step here, and the Registrar need not wait for an application.

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