Part 38U.K.Companies: interpretation

1169Dormant companiesU.K.

(1)For the purposes of the Companies Acts a company is “dormant” during any period in which it has no significant accounting transaction.

(2)A “significant accounting transaction” means a transaction that is required by section 386 to be entered in the company's accounting records.

(3)In determining whether or when a company is dormant, there shall be disregarded—

(a)any transaction arising from the taking of shares in the company by a subscriber to the memorandum as a result of an undertaking of his in connection with the formation of the company;

(b)any transaction consisting of the payment of—

(i)a fee to the registrar on a change of the company's name,

(ii)a fee to the registrar on the re-registration of the company,

(iii)a penalty under section 453 (penalty for failure to file accounts), or