The test for dormancy is provided for in the Companies Act, i.e. that there is no
accounting transaction during that financial year. The Companies Act also states the transactions which will are to be disregarded when determining dormancy:
1.)The taking of shares in the company by a subscriber to the memorandum in pursuance of an undertaking of his in the memorandum;
2.)The appointment of a secretary of the company;
3.)The appointment of an auditor;
4.)The maintenance of a registered office;
5.)The keeping of registers and books;
6.)The payment of any fee and charges payable under written law;
7.)The payment of any composition amount payable under written law;
8.)The payment or receipt by the company of a nominal sum not exceeding $5,000.