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CS Executive · Company Law and Practice · Charges

Anita Desai, who is neither a member nor a creditor of Sundaram Engineering Ltd, wishes to inspect its company register of charges at the registered office. Which statement is correct under section 85?

Anita may inspect during business hours by paying the prescribed fees. Section 85(2)(b) extends inspection to any other person beyond members and creditors, subject to reasonable restrictions the company may impose through its articles.

  1. AShe may inspect during business hours on payment of the prescribed fees, subject to reasonable restrictions in the articlesCorrect
  2. BShe has no right of inspection because only members and creditors may inspect
  3. CShe may inspect free of charge because the register is a public record
  4. DShe may inspect only with the prior written consent of the Registrar

Explanation

Section 85(2)(b) allows any other person to inspect during business hours on payment of the prescribed fees. This is subject to reasonable restrictions that the company may impose by its articles. The right is not limited to members and creditors, and no Registrar consent is required.

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