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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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