Dormant company

 Dormant company:-

              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.

    

    "Significant accounting transaction" means any transaction other than-

(i) payment of fees by a company to the               Registrar.

(ii) payments made by it to fulfil the                   requirements of this Act or any other law


(iii) allotment of shares to fulfil the requirements of this Act; and


(iv) payments for maintenance of its office and records.





Comments

Post a Comment

Popular posts from this blog

How the stock market work?

Image
 WHAT IS STOCK? Companies need money to help them grow They use it for all kinds of things, like buying materials to make their products, developing new products, building plants and hiring people to work  To raise money, companies often split ownership of the companies into smaller "shares" that they sell to the public. The shares are also called 'stocks. HOW IT WORKS? A Stock Exchange is an institution which hosts a market where traders can buy and sell stocks. Traders make money by buying the stock before the price goes up, and then they sell it before it goes back down. The price of the stock reflects the available information about the financial health of the company. Traders watch the stock rise and fall and make decisions to make a profit. HOW TRADERS MAKE MONEY? If you sold your stock on a day when the price of that stock is higher than the price you paid for it, you would make money HOW TRADERS LOSE MONEY? If you sold your stock on a day when the price of that st
Read more

Government company

Image
  Government Company   As per Section 2(45), government company means any company in which not less than fifty-one per cent. of the paid-up share capital is held by- (i) the Central Government, or (ii) by any State Government or Governments, or  (iii) partly by the Central Government and partly by one or more State governments, And the section includes a company which is a subsidiary company of such a government company
Read more

How do Demat shares operate?

Image
 How do Demat shares operate?    To understand The term 'depository' here, let us go back to the times when shares used to be held in physical form by the shareholders and the evidence that a particular person was a shareholder in a particular company in which he/ she had invested, could be proved only by the fact that the said person had the share certificates of the company. With the advent of time, the companies dematerialised their shares by converting them into electronic form and thus, now-a-days if you wish to invest in the shares of a company, you can do so by opening a Demat account and so the shares get transferred to you. In this situation, you are the beneficial owner of the shares of the company in which you have invested. The physical shares are still issued by the Company and transferred to intermediary institutions (like NSDL and CDSL in India) who store and secure the shares for the company and the investor and maintains an account for their securities. These i
Read more