Explanatory statement under section102 for obtaining dormant status

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22 February 2024 An explanatory statement under section102 for obtaining dormant status

Asha Kanta Sharma

Asha Kanta Sharma

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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.