A company which has not carried out any significant accounting transactions either since formation or since the end of the previous financial accounting year (section 249AA(4), Companies Act 1985).
When considering whether a company is dormant the following financial transactions may be disregarded:
• Payment for shares taken by subscribers to the memorandum of association.
• A fee paid to the Registrar of Companies on a change of company name, the re-registration of a company or filing of annual returns.
• Payment made to the Registrar of Companies as a penalty for failure to deliver accounts (section 249AA(6)).
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.