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    Question

    What can a company formed under the Companies Act, which has no significant accounting transactions and is intended for a future project or asset holding, do?

    A It can continue its operations as usual Correct Answer Incorrect Answer
    B It must dissolve and wind up its affairs Correct Answer Incorrect Answer
    C It can transfer its assets to another company Correct Answer Incorrect Answer
    D It must merge with another active company Correct Answer Incorrect Answer
    E It can apply to the Registrar to obtain the status of a dormant company Correct Answer Incorrect Answer

    Solution

    Section 455. Dormant company: (1) Where a company is formed and registered under this Act for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive company may make an application to the Registrar in such manner as may be prescribed for obtaining the status of a dormant company.

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