In case of continuous in operation of the corporation, the corporation is declared delinquent and shall be allowed to comply within a period of

• A. 1 year
• B. 2 years
• C. 3 years
• D. 5 years

Answer: (B)

The idea being tested is the grace period a delinquent corporation gets to cure non-compliance while still operating. When a corporation is declared delinquent, the regulation provides a fixed window during which it can bring itself back into good standing by filing the required reports, settling fees, and meeting other regulatory requirements without losing its corporate status. That window is two years. During these two years, the company can continue its business activities, but it must complete the necessary steps to comply. If compliance is achieved within this period, the corporation remains active; if not, regulatory action up to dissolution or revocation of its registration can follow. Shorter than two years (like one year) would be insufficient for full compliance, while longer periods (three or five years) exceed what's allowed for this delinquency remedy.