Dormant Companies Under Section 455 of The Companies Act, 2013: Regulatory Intent and Practical Relevance

Abstract

The 'dormant companies' concept is a decidedly less hyped one under Companies Act 2013, as section 455 deals with the regulatory vacuum of corporal inactivity. The present doctrinal research paper, analyses the jurisprudential nature of a “dormant company” regime – its legislative intent, statutory requirements, compliance requirement and developing practice of quasi-judicial authority. The Section 455 stipulates that, a calibrated regulatory response which strikes the balance between the intricacies of business and corporate accountability effortlessly. The research article concludes by stating the two vital elements, reinforced jurisprudential values and regulatory guidance for “Dormant companies” with the purview of India’s Corporate Governance Ecosystem.