Companies Act 2013- Update DORMANT COMPANY IS A NEW TERM INTRODUCED BY THE COMPANIES ACT, 2013. 1. Meaning of Dormant Company? Dormant Company means an “Inactive Company” which has not been carrying on any business or operation, or has not made any significant accounting transaction during the last two financial years, or has not filed financial statements and annual returns during the last two financial years. 2. How to make a Company Dormant? FORM MSC-1 An inactive company may make an application in Form MSC-1 along with requisite fee to the Registrar for obtaining the status of a Dormant Company, after passing a special resolution to this effect in the general meeting of the company or after issuing a notice to all the shareholders of the company for this purpose and obtaining consent of at least 3/4th shareholders (in value). Company whose securities are Listed on any Stock Exchange within or outside India, can not make application for Dormant Company. FORM MSC-2 The Registrar shall, after considering the application, issue a certificate in Form MSC-2 allowing the status of a Dormant Company. 3. Minimum number of directors A dormant company shall have a minimum number of director -(a) 3 directors in case of a public company, (b) 2 directors in case of a private company and (c) 1director in case of a One Person Company. 4. FORM MSC-3 (Return of dormant companies) A dormant company shall file a “Return of Dormant Company” annually, indicating financial position in Form MSC- 3 along with requisite annual fee within a period of thirty days from the end of each financial year. Provided that the company shall continue to file the return or returns of allotment and change in directors, within the time, whenever the concerned events take place. 5. How to convert a Dormant Company into Active Company? FORM MSC-4 An application shall be made for obtaining the status of an active company in Form MSC-4 along with fees and shall be accompanied by a return in Form MSC-3 in respect of the financial year in which the application for obtaining the status of an active company is being filed. FORM MSC-5 The Registrar shall, after considering the application filed in Form MSC-4, issue a certificate in Form MSC-5 allowing the status of an active company to the applicant. 6. Striking Off name of Company. Registrar shall initiate the process of striking off the name of the company if the company remains as a dormant company for a period of consecutive five years. Source: As per MCA notified Chapter 29II rules
Posted on: Tue, 15 Apr 2014 18:53:55 +0000
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