# Companies Act 2006, Section 1169: Dormant companies

Extent: E+W+S+N.I.

(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
(iv) a fee to the registrar for the registration of a confirmation statement.
(4) Any reference in the Companies Acts to a body corporate other than a company being dormant has a corresponding meaning.

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Source: https://www.legislation.gov.uk/ukpga/2006/46/section/1169 (the official version)
Page: https://openlegislation.uk/companies-act-2006/section-1169
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.