CS Executive · Company Law and Practice · Dormant Company
Sagar Realty Ltd has not filed financial statements or annual returns for two financial years consecutively and has made no application for dormant status. What does section 455 require of the Registrar in this case?
The Registrar must issue a notice to the company and enter its name in the register maintained for dormant companies. This follows where financial statements or annual returns are not filed for two financial years consecutively, and it does not depend on the company applying or on any Tribunal order.
- AIssue a notice to the company and enter its name in the register maintained for dormant companiesCorrect
- BStrike off the company's name from the register of companies immediately without notice
- CWait for the company to apply and then issue a dormant certificate
- DRefer the matter to the Tribunal, which alone can enter the name in the register of dormant companies
Explanation
Section 455(4) provides that for a company which has not filed financial statements or annual returns for two financial years consecutively, the Registrar shall issue a notice to that company and enter its name in the register maintained for dormant companies. No application is needed and the Tribunal has no role. Immediate strike off without notice is not what the sub-section says.
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