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

Meghdoot Ventures Pvt Ltd was registered to hold a patent for a future product and has made no significant accounting transaction since incorporation. Under the Companies Act, 2013, what can the company do to obtain the status of a dormant company?

The company should apply to the Registrar in the prescribed manner. Section 455 permits a company formed for a future project or to hold an asset or intellectual property, having no significant accounting transaction, to seek dormant status, and the Registrar grants it by issuing a certificate.

  1. APass a special resolution and inform the shareholders only
  2. BApply to the Registrar in the prescribed manner for dormant statusCorrect
  3. CFile an application before the Supreme Court
  4. DWait until the Registrar strikes off its name automatically

Explanation

Section 455(1) allows a company formed for a future project or to hold an asset or intellectual property, with no significant accounting transaction, to apply to the Registrar in the prescribed manner for dormant status. The Registrar then issues a certificate. A resolution alone does not confer the status, and striking off is a consequence of non-compliance, not a route to dormancy.

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