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CS Professional · Compliance Management, Audit and Due Diligence · Documentation and Maintenance of Records

A compliance officer of Meridian Foods Ltd argues that because Section 398 lets the Central Government require filings with the Registrar in electronic form, Section 120 is unnecessary for company-held registers. Which response is correct?

The argument is incorrect. Section 398 relates to filing, delivery, Registrar's electronic records and electronic payment, whereas Section 120 specifically permits a company to keep documents and allow inspection or copies in electronic form. The two provisions serve different purposes, and neither makes the other unnecessary.

  1. ACorrect, because Section 398 governs every document kept by a company
  2. BCorrect, because Section 120 applies only to dormant companies
  3. CIncorrect, because Section 398 deals with filing, delivery and Registrar-maintained records, while Section 120 deals with documents kept or inspected by the companyCorrect
  4. DIncorrect, because Section 120 overrides Section 398 and makes all filing optional

Explanation

Section 398 empowers rules requiring filings, service, Registrar's records, inspection through the Registrar and fee payment in electronic form. Section 120 separately lets a company keep and give inspection or copies of its own documents electronically. They operate in different areas, so Section 120 is not redundant. Option D is wrong as Section 120 does not make filing optional.

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