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CS Executive · Company Law and Practice · Dormant Company

Mehta Ventures Pvt Ltd was incorporated only to hold a trademark for a future product launch and has had no significant accounting transaction. Under the Companies Act, 2013, what may it do to obtain the status of a dormant company?

The company may apply to the Registrar in the prescribed manner. Section 455 provides that a company formed to hold intellectual property or for a future project, with no significant accounting transaction, applies to the Registrar, who then allows dormant status and issues a certificate.

  1. APass a special resolution and inform the stock exchange
  2. BMake an application to the Registrar in the prescribed mannerCorrect
  3. CWait for the Registrar to strike off its name first
  4. DFile a petition before the Tribunal for a dormancy order

Explanation

Section 455(1) lets a company formed for a future project or to hold an asset or intellectual property, with no significant accounting transaction, apply to the Registrar in the prescribed manner. The Registrar then allows the status and issues a certificate. The Tribunal and stock exchange have no role in granting it.

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