07 July 2024
An explanatory statement under Section 102 of the Companies Act, 2013, for obtaining dormant status typically includes details and justifications for why a company wishes to apply for dormant status. Here’s a structured outline of what such a statement could include:
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**Explanatory Statement for Obtaining Dormant Status under Section 102**
**1. Introduction:** - Briefly introduce the company and its current status. - State the intention to apply for dormant status under Section 455 of the Companies Act, 2013.
**2. Reasons for Seeking Dormant Status:** - Explain the specific reasons and circumstances leading to the decision to apply for dormant status. - Mention any strategic decisions or changes in business operations that justify the need for dormant status. - Highlight any regulatory or financial benefits that the company seeks to achieve by obtaining dormant status.
**3. Current Business Situation:** - Provide an overview of the company’s current business activities and operations. - Outline any recent developments or changes in business focus that necessitate dormant status.
**4. Compliance with Dormant Status Criteria:** - Confirm that the company meets the eligibility criteria for obtaining dormant status as per Section 455 of the Companies Act, 2013. - Ensure that all legal and regulatory obligations have been met or will be met prior to obtaining dormant status.
**5. Future Plans and Intentions:** - Describe the company’s plans and intentions during the dormant status period. - Explain how the company intends to comply with ongoing regulatory requirements and responsibilities during the dormant status.
** Declaration:** - Affirm that the information provided in this statement is true and accurate to the best of the company’s knowledge. - Confirm that the decision to apply for dormant status has been duly considered and approved by the board of directors or shareholders, as required.
**. Conclusion:** - Summarize the key points discussed in the statement. - Express readiness to provide any additional information or documents as required by the Registrar of Companies.
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**Note:** It’s essential to tailor the explanatory statement to the specific circumstances and requirements of your company. Consulting with a legal advisor or company secretary can ensure that the statement complies with all legal provisions and effectively communicates the company’s rationale for seeking dormant status.
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