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CS Executive · Setting Up of Business, Industrial and Labour Laws · Corporate Entities - Companies

Zenith Pvt Ltd did not file its financial statements or annual returns for two financial years consecutively. Under the Companies Act, 2013, what does the Registrar do?

The Registrar issues a notice to the company and enters its name in the register of dormant companies. This follows from Section 455(4), which applies where financial statements or annual returns have not been filed for two financial years consecutively.

  1. AStrikes off its name immediately without notice
  2. BIssues a notice to it and enters its name in the register of dormant companiesCorrect
  3. CConverts it into a One Person Company
  4. DDirects it to become a small company

Explanation

Section 455(4) provides that for a company not filing 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. Immediate strike off is not the stated consequence.

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