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CS Executive · Company Law and Practice · Dormant Company

Meridian Heritage Pvt Ltd, which holds a dormant-company certificate, wants to resume trading. Under the Companies Act, 2013, how can it become an active company?

A dormant company becomes active by applying to the Registrar with the prescribed documents and fee. Section 455(5) provides this route. A board resolution, mere passage of time or a Tribunal order does not remove dormant status.

  1. ABy passing a board resolution and informing its auditors
  2. BBy making an application to the Registrar accompanied by the prescribed documents and feeCorrect
  3. CBy waiting for two financial years to elapse so that the status lapses automatically
  4. DBy obtaining an order of the Tribunal under the winding-up provisions

Explanation

Section 455(5) says a dormant company may become an active company on an application made to the Registrar, accompanied by such documents and fee as may be prescribed. A board resolution alone is not enough, and the status does not lapse automatically. No Tribunal order is needed.

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