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CS Executive · Company Law and Practice · Dormant Company

Meru Infra Ltd has carried on no business or operation for the two immediately preceding financial years and has not applied for dormant status. The Registrar has reasonable cause to believe this. Which statement is correct under section 248?

The Registrar sends a notice to the company and all its directors of the intention to remove its name, asking for representations with documents within thirty days. Section 248(1)(c) applies when no business is carried on for two preceding years and no dormant application is made.

  1. AThe Registrar sends notice to the company and all directors of his intention to remove its name, seeking representations within thirty daysCorrect
  2. BThe Registrar may strike off its name at once without notice
  3. CThe Registrar must first grant it dormant status automatically
  4. DThe Registrar may act only if three-fourths of the members apply

Explanation

Section 248(1)(c) covers a company not carrying on business for two immediately preceding years without applying for dormant status. The Registrar must send notice to the company and all directors and invite representations within thirty days. The three-fourths member route is a separate one under 248(2).

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