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CA Intermediate · Corporate and Other Laws · Accounts of Companies

Himalaya Textiles Ltd, a public company, has its registered office in Ludhiana. Its Board proposes to keep the books of account at the company's factory in Panipat, Haryana, instead of at the registered office. Which of the following is the correct legal position under the Companies Act, 2013?

A company may keep its books of account at a place in India other than the registered office if the Board decides so by resolution. It must then file notice with the Registrar within seven days giving the full address. No prior Regional Director approval is needed.

  1. AThe books may be kept at any place in India if the Board so decides by a resolution, and the Registrar must be given written notice in the prescribed form within seven days of the decisionCorrect
  2. BThe books may be kept at any place in India only with prior approval of the Regional Director
  3. CThe books must always be kept at the registered office and cannot be kept anywhere else
  4. DThe books may be kept at any place outside India if the Board passes a resolution

Explanation

The Act allows books of account to be kept at the registered office or at any other place in India as decided by the Board. The company must file a notice with the Registrar in the prescribed form within seven days of the Board's decision, giving the full address of that other place. Prior Regional Director approval is not required, so option 2 is wrong.

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