201A. Certain dormant companies exempted from duty to prepare financial statements

Question 1

201A. Certain dormant companies exempted from duty to prepare financial statements

Answer 1

General overview
[201A.01] Currently, a dormant company is exempted from the statutory audit requirements under s 205B(1). As a dormant company does not carry out active trading, it is less likely that anyone will be prejudiced if the company does not prepare accounts. Hence, the Steering Committee recommended that dormant companies be exempted from preparing financial statements pursuant to s 201A: see the Report of the Steering Committee for Review of the Companies Act, April 2011, Chapter 4, paras 18–29.