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

Harsh Pharma Ltd keeps its register of members in electronic form. An auditor asks which provision governs the manner in which this is done. Which is the most accurate answer?

Section 120 enables electronic maintenance but leaves the detail to the rules, saying the form and manner are as prescribed. It does not set technical formats itself. Sections 397 and 455 deal with evidence from Registrar records and dormant companies, so they do not govern this.

  1. ASection 120 itself lays down the full technical format in its text
  2. BSection 455, because electronic records are kept only by dormant companies
  3. CSection 397, because it prescribes how companies must store their internal registers
  4. DSection 120 permits electronic keeping, but the form and manner are those prescribed by the rulesCorrect

Explanation

Section 120 enables electronic maintenance 'in such form and manner as may be prescribed', so the detail lies in the rules. Section 397 concerns admissibility of Registrar-held documents as evidence, and Section 455 concerns dormant companies; neither governs a company's internal registers.

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