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CS Professional · Compliance Management, Audit and Due Diligence · Documentation and Maintenance of Records

Zenith Holdings Ltd obtained dormant status. It now wants to retain the status while keeping minimal records and activity. Which statement fits the Companies Act, 2013?

A dormant company must keep the prescribed minimum number of directors, file the prescribed documents and pay the prescribed annual fee to retain its status. If it fails, the Registrar shall strike its name off the register of dormant companies. Becoming active again requires an application.

  1. AIt need do nothing further as dormant status is permanent
  2. BIt must have the prescribed minimum directors, file prescribed documents and pay the prescribed annual fee, failing which the Registrar shall strike its name off the dormant registerCorrect
  3. CIt may revert to active status automatically after one year
  4. DIt must file only annual fees; directors are not required

Explanation

Section 455(5) requires a dormant company to have the prescribed minimum number of directors, file prescribed documents and pay the prescribed annual fee to retain status. Section 455(6) says the Registrar shall strike off the name from the register of dormant companies if it fails to comply. Return to active status needs an application with documents and fee.

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