Understanding Dormant Companies under Companies Act 2013

The question asks us to identify which types of companies, based on the provided text, do not fall under the purview of a Dormant Company according to Section 455 of the Indian Companies Act, 2013.

Let's analyze the definition and eligibility criteria for a Dormant Company as described in the paragraph.

The text states:

• Section 455 of the Indian Companies Act, 2013 introduces the concept of "DORMANT COMPANY".
• It is beneficial for promoters wanting to hold assets or intellectual property for future use.
• Companies that haven't started business for a long time or have no significant accounting transaction may be "Inactive company".
• Such an Inactive company can apply for the status of a Dormant Company.
• The text explicitly mentions which types of companies can be Dormant Companies: "A dormant company may be either a public company or a private company or a one person company."
• Obtaining dormant company status leads to less compliance compared to an active company, saving costs for inactive companies.

Analyzing Company Types and Dormant Status

Based on the explicit statements in the paragraph, let's evaluate each company type listed in the options:

• (A) Private company: The text says a private company may be a dormant company. So, it falls under the purview.
• (B) One person company: The text says a one person company may be a dormant company. So, it falls under the purview.
• (C) Limited and unlimited liability companies: The text does not explicitly mention that limited liability companies or unlimited liability companies can or cannot be dormant companies. The text lists eligibility based on the type (public, private, OPC) and activity status (inactive). While public, private, and OPCs often have limited liability, the text does not define eligibility based on the nature of liability (limited/unlimited) as a standalone criterion or type. Therefore, based strictly on the provided text, this category is not explicitly included in the list of types that can be dormant.
• (D) Public company: The text says a public company may be a dormant company. So, it falls under the purview.
• (E) Government company: The text does not mention whether a Government company can be a dormant company. Based strictly on the provided text, this category is not explicitly included in the list of types that can be dormant.

The question asks which companies do not fall under the purview of a Dormant company, based on the provided text. From our analysis, based on what is *explicitly stated* in the paragraph, the categories not mentioned as eligible are:

• (C) Limited and unlimited liability companies
• (E) Government company

Evaluating the Options for the Answer

Now let's look at the given options to choose the most appropriate one:

1. (C), (E) Only: This option lists Limited and unlimited liability companies and Government company. Based on our analysis, neither of these categories is explicitly stated in the text as being able to be a dormant company. This aligns with our finding.
2. (A), (C), (D) Only: This option includes (A) Private company and (D) Public company, both of which are explicitly mentioned as being able to be dormant companies. This option is incorrect as it includes types that *do* fall under the purview.
3. (A), (B), (D) Only: This option includes (A) Private company, (B) One person company, and (D) Public company. All three are explicitly mentioned as being able to be dormant companies. This option is incorrect as it lists companies that *do* fall under the purview.
4. (B), (C), (E) Only: This option includes (B) One person company, which is explicitly mentioned as being able to be a dormant company. This option is incorrect as it includes a type that *does* fall under the purview.

Therefore, based on the specific information provided in the paragraph, the companies that do not explicitly fall under the purview of a Dormant company are Limited and unlimited liability companies and Government company.

Conclusion

Based on the analysis of the provided paragraph regarding Dormant Companies under the Indian Companies Act, 2013, only Public Companies, Private Companies, and One Person Companies are explicitly mentioned as being eligible for dormant status. Consequently, the company types listed which are not explicitly stated as eligible in the text are Limited and unlimited liability companies and Government companies.

The final answer is (C), (E) Only.

Revision Table: Dormant Company Eligibility based on Text

Additional Information about Dormant Company Status

Applying for Dormant Company status under Section 455 of the Companies Act, 2013 is a way for companies that are currently inactive or formed for a future project to significantly reduce their compliance burden. An "Inactive company" is defined in the Act as a company which has not been carrying on any business or operation, or has not made any significant accounting transaction during the last two financial years, or has not filed financial statements and annual returns during the last two financial years. By obtaining the status of a Dormant Company from the Registrar of Companies (RoC), the company needs to file only a simple return annually, greatly reducing professional fees and administrative costs compared to an active company.

This provision is particularly useful for companies holding assets like land or intellectual property intended for future ventures, allowing them to maintain the corporate structure at a lower cost while protecting the assets.

The categories explicitly listed in the Act (and reflected in the provided text) are typically based on the fundamental classification of companies. While liability structures (limited/unlimited) and ownership (government) are important aspects of companies, Section 455 focuses on the activity level and the core company type (public, private, OPC).