A defunct company is a business that is no longer in operation. This can occur for a variety of reasons, such as bankruptcy, merger, acquisition, or simply because the company was unable to continue operating due to changing market conditions or financial struggles.
The term "defunct" can be used to refer to any type of company, from small startups to large multinational corporations. When a company becomes defunct, it typically means that it has ceased all business activities and is no longer generating revenue.
There are several possible outcomes for a defunct company. In some cases, the company's assets may be sold off in order to pay off debts or to fund the company's liquidation. In other cases, the company may be dissolved completely, with all of its assets and liabilities transferred to another entity.
The meaning of a defunct company can have significant consequences for its employees, customers, and shareholders. For employees, the end of a company can mean the loss of a job and the need to find new employment. For customers, it may mean the loss of a product or service they relied on, and the need to find an alternative. For shareholders, it can mean the loss of any investment they made in the company.
In some cases, a defunct company can be resurrected through a process known as "corporate rebirth." This involves the creation of a new company that takes over the assets and liabilities of the old company, allowing it to continue operating under a new name and ownership structure. However, this is not always possible, and the end of a company can mark the end of an era for its stakeholders.
Overall, the meaning of a defunct company is that it is no longer in operation, and its future is uncertain. While it may be possible for a company to be reborn and continue operating, this is not always the case, and the end of a company can have significant consequences for those who were connected to it.
What Is a Defunct Company? (with pictures)
If some assets or liability exist it should be nullify. What is defunct example? What does it mean to defunct? It is imperative to note that in terms of law, the Registrar must send the said notice of intention to strike-off the company from the Register directly to the company at its registered office. The scheme is applicable from 3 rd July 2011. Dormant Company is not required to include the statement of cash flow in its financial statement. Page 1 Avtar Singh, Company Law, 15th Edition, p. In case of company s like Non-Banking Financial Company s , Collective Investment Management Company s which are regulated by other Regulator s namely RBI, SEBI, the Registrar of Companies, at the end of every week, shall send intimation of such companies availing fast track exit mode during that period to the concerned Regulator s and also an intimation in respect of all companies availing fast track exit mode during that period to the office of the Income Tax Department giving thirty days time for their objection, if any; 6. Ques: What are some of the exemptions provided to a dormant company? These conditions are given under Section 249 1 of the Companies Act, 2013.
Defunct Definition & Meaning
It may be used to describe laws and regulations, businesses, organizations, currencies, brands, practices and more. Regarding your query, can company opt for closure without filing annual returns, I would like to inform you that company can make application for the FTE without filing Annual return if all other conditions are satisfied. The Registrar of Companies immediately after passing of time given in sub-paras a to c of this Para and on being satisfied that the case is otherwise in order, shall strike its name off the Register and shall send notice under sub-section 5 of section 560 of the Companies Act, 1956 for publication in the Official Gazette and the applicant company shall stand dissolved from the date of publication of the notice in the Official Gazette. But to speak of a person as defunct would sound disrespectful—which is how it sounds in e. Where the company is not carrying any business or operation or it has discontinued the operations completely, then it can make any application to the Registrar of Companies for declaring it as defunct company.
