What is the procedure for the Registrar to dissolve a company?

The procedure for the Registrar to dissolve a company typically involves notifying the company of its compliance failures. This ensures that the company is aware of the issues that need to be addressed regarding its obligations under the law. When a company is not complying with statutory requirements, the Registrar will first send a formal letter informing the company of these compliance failures. This notice provides the company with an opportunity to rectify the issues before a final decision is made regarding dissolution.

This approach emphasizes the principles of transparency and fairness in the process, allowing the company to respond and take corrective measures if possible. Should the company fail to address the issues raised in the letter, further actions—such as dissolution—may be pursued.

In contrast, options like issuing a financial penalty or conducting an on-site audit do not align with the standard procedure for dissolution. While these may be relevant in certain enforcement contexts, they are not the initial step for dissolution. Notifying shareholders of potential dissolution, while important, is not the primary action taken by the Registrar before dissolving a company. Instead, the initial communication focuses on compliance issues, which is why notifying the company of its compliance failures is central to the dissolution process.