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CS Professional · Corporate Restructuring, Valuation and Insolvency · Acquisition of Company or Business

Ishaan Retail Ltd, after acquiring an undertaking through investment in the securities of Vihaan Stores Ltd, is asked about its record-keeping obligations under section 186. Which is correct?

The company must maintain a register of the acquisition with the prescribed particulars at its registered office. It is open to inspection, and any member may take extracts or obtain copies on paying the prescribed fee.

  1. AIt must keep a register of such acquisitions at its registered office, open to inspection, with extracts available to any member on payment of the prescribed feeCorrect
  2. BIt must file the register with the Registrar annually and need not keep it at its office
  3. CThe register is open only to directors
  4. DNo register is needed if the acquisition was approved by special resolution

Explanation

Section 186(9) requires every company making an acquisition under the section to keep a register with prescribed particulars. Section 186(10) requires it at the registered office, open to inspection, with members entitled to extracts and copies on payment of prescribed fees. Special resolution approval does not remove this duty.

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