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CS Professional · Compliance Management, Audit and Due Diligence · Documentation and Maintenance of Records

Meghdoot Services Ltd has not filed financial statements or annual returns for two consecutive financial years and has not applied for any special status. Its secretary asks what the Registrar will do under the Companies Act, 2013. What is correct?

Under Section 455(4), where a company has not filed financial statements or annual returns for two consecutive financial years, the Registrar issues a notice to it and enters its name in the register of dormant companies, without waiting for an application from the company.

  1. AThe Registrar must wait for the company to apply before taking any action
  2. BThe Registrar issues a notice and enters the company's name in the register of dormant companiesCorrect
  3. CThe Registrar immediately strikes off the company without notice
  4. DThe Registrar converts the company into a private company

Explanation

Section 455(4) states that for a company that has not filed financial statements or annual returns for two consecutive years, the Registrar shall issue a notice and enter its name in the register of dormant companies. No application is needed, and it is not a direct strike off. Section 455(6) strike off applies only to dormant companies failing the section's requirements.

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