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CS Executive · Company Law and Practice · Legal Status and Types of Registered Companies

Sagar Foods Ltd did not file financial statements or annual returns for two financial years consecutively and never applied for dormant status. What does the Companies Act, 2013 require the Registrar to do?

The Registrar must issue a notice to the company and enter its name in the register of dormant companies. Section 455(4) applies this where financial statements or annual returns have not been filed for two consecutive financial years, even without an application by the company.

  1. AIssue a notice to the company and enter its name in the register of dormant companiesCorrect
  2. BImmediately wind up the company through the Tribunal
  3. CConvert it into a private company
  4. DTake no action unless a creditor complains

Explanation

Section 455(4) says that where a company has not filed financial statements or annual returns for two consecutive financial years, the Registrar shall issue a notice and enter its name in the register maintained for dormant companies. Winding up and conversion are not provided in this provision.

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