CS Executive · Company Law and Practice · Dormant Company
Ruchi Infra Ltd is on the register of dormant companies but fails to comply with the requirements of Section 455, such as filing documents and paying the annual fee. What is the consequence?
The Registrar shall strike off the company's name from the register of dormant companies. Section 455(6) provides this for failure to meet the section's requirements. It is removal from that register, not automatic dissolution of the company, which follows a separate process under Section 248.
- AThe Registrar shall strike off its name from the register of dormant companiesCorrect
- BThe company automatically becomes dissolved
- CThe directors are disqualified for five years
- DThe company is converted into a Section 8 company
Explanation
Section 455(6) says the Registrar shall strike off the name of a dormant company from the register of dormant companies if it has failed to comply. This is removal from the dormant register, not dissolution; dissolution arises under Section 248(5) after notice. The distractor of automatic dissolution confuses the two provisions.
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.
More Dormant Company questions
- Vistara Heritage Pvt Ltd was incorporated to hold a trademark it acquired for a brand it plans to launch later. It has had no significant ac…
- Veda Holdings Pvt Ltd was incorporated in 2023 solely to hold a trademark acquired for a product launch planned in future. It has had no sig…
- Sagar Realty Ltd has not filed financial statements or annual returns for two financial years consecutively and has made no application for …
- Nirmaan Ltd failed to file financial statements and annual returns for two consecutive financial years. No application for dormant status wa…
- Mehta Ventures Pvt Ltd was incorporated only to hold a trademark for a future product launch and has had no significant accounting transacti…
- Sunrise Agro Ltd filed no financial statements or annual returns for two consecutive financial years. What does Section 455(4) direct the Re…