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CS Executive · Company Law and Practice · Dormant Company

Kaveri Ventures Pvt Ltd holds dormant status. To retain that status in the register of dormant companies, what must it do as per the Companies Act, 2013?

To retain dormant status, the company must have the prescribed minimum number of directors, file the prescribed documents and pay the prescribed annual fee to the Registrar. Section 455(5) sets this requirement. Without directors, or without the filings and fee, the status cannot be retained.

  1. AHave the prescribed minimum number of directors, file prescribed documents and pay the prescribed annual feeCorrect
  2. BHold no board meetings and appoint no directors at all
  3. CFile only an annual return and no other document or fee
  4. DObtain a fresh Tribunal order every financial year

Explanation

Section 455(5) requires a dormant company to have the prescribed minimum number of directors, file prescribed documents and pay the prescribed annual fee to retain its status. No Tribunal order is required, and directors cannot be dispensed with.

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