Skip to content

CS Executive · Company Law and Practice · Dormant Company

Nirmaan Ltd failed to file financial statements and annual returns for two consecutive financial years. No application for dormant status was made. Under section 455, what follows?

The Registrar issues a notice to the company and enters its name in the register of dormant companies. Section 455(4) applies where financial statements or annual returns have not been filed for two consecutive financial years, so no application from the company is needed.

  1. AThe Registrar issues a notice and enters its name in the register of dormant companiesCorrect
  2. BThe Registrar strikes off the company immediately without notice
  3. CThe Tribunal declares it dormant on a member's complaint
  4. DNothing, since dormant status needs the company's application

Explanation

Section 455(4) provides that for a company that has not filed financial statements or annual returns for two financial years consecutively, the Registrar shall issue a notice and enter its name in the register maintained for dormant companies. The company need not apply in that case.

Did you get it right without looking?

One question tells you little. A timed set on Dormant Company shows your real accuracy, how long you take and where you lose marks.

Practise Dormant CompanyFree diagnostic mock

More Dormant Company questions