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CS Professional · Corporate Restructuring, Valuation and Insolvency · Strike Off and Restoration of Name of the Company and LLP

Kisan Agro Producer Company Ltd was registered on 1 April 2024. By 15 June 2025 it had not commenced any business. Under Section 378ZP, what is the Registrar's position?

The Registrar may strike off the name because the company failed to commence business within one year of registration. He must first issue a show cause notice, with a copy to all directors, and give a reasonable opportunity to represent its case. The Tribunal's prior order is not needed.

  1. AHe may strike off its name only after the company completes two years from registration
  2. BHe may make an order striking off its name, after giving a show cause notice and a reasonable opportunity to represent its caseCorrect
  3. CHe can strike off its name without any notice because the failure is clear on the record
  4. DHe must first apply to the Tribunal, which alone can order striking off

Explanation

Section 378ZP(1) allows striking off where a Producer Company fails to commence business within one year of registration. Over one year has passed here. The proviso requires a show cause notice, with a copy to all directors, and a reasonable opportunity to be heard. The no-notice option ignores that proviso.

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