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CS Professional · Compliance Management, Audit and Due Diligence · Secretarial Audit

During a secretarial audit of Kaveri Foods Ltd, the practising company secretary finds that the records are kept in a branch office and the finance head refuses access, saying the audit is a favour and not a duty. Which statement matches section 204?

Under section 204(2), it is the company's duty to give all assistance and facilities to the company secretary in practice for auditing the secretarial and related records. Refusal of access, whether at a branch or elsewhere, is not permitted and can attract the penalty under section 204(4).

  1. AThe company has a duty to give all assistance and facilities for auditing its secretarial and related recordsCorrect
  2. BThe company need only give access to records kept at the registered office
  3. CThe company may refuse access if the Board has not asked for the audit in writing
  4. DOnly the company secretary of the company must assist, not other officers

Explanation

Section 204(2) makes it the duty of the company to give all assistance and facilities to the company secretary in practice for auditing the secretarial and related records. The refusal is therefore a contravention. Limiting access to the registered office finds no support in the text.

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