Companies Act, 2017

PART-X

SUPPLEMENTARY PROVISIONS AS TO WINDING UP

From: 2023-11-01 - To: 0000-00-00 1[424. Inactive Company.- (1) Where a company, other than a listed company, is formed 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 specified for obtaining the status of an inactive company. Explanation.- For the purposes of this section- (a) “inactive company” means a company, other than a listed 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; (b) “significant accounting transaction” means any transaction other than- (i) payments made by it to fulfill the requirements of this Act or any other law. (ii) allotment of shares to fulfill the requirements of this Act: and (iii) payments for maintenance of its office and records (2) The registrar on consideration of the application shall allow the status of inactive company to the applicant and issue a certificate in such form as may be specified to that effect. (3) The registrar shall maintain a register of inactive companies in such form as may be specified (4) In case of 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 the name of such company in the register maintained for inactive companies. (5) An…