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

Kaveri Engineering Pvt Ltd keeps its minutes in electronic form. A member asks for a copy of a register that the Act allows to be given on request. The company secretary asks whether the copy may be supplied electronically. Under Section 120, what is the position?

The copy may be supplied in electronic form. Section 120 covers documents the company must give copies of, and says copies may be given in electronic form in the prescribed form and manner. The power is not limited to inspection, and no shareholding threshold or Section 398 scheme applies.

  1. ACopies may be given only on paper because inspection alone can be electronic
  2. BCopies may be given in electronic form, in the form and manner prescribedCorrect
  3. CCopies may be given electronically only if the Central Government notifies a scheme under Section 398(2)
  4. DCopies may be given electronically only to members holding more than 10% shares

Explanation

Section 120(b) covers documents allowed to be inspected or copies to be given by the company, and says they may be kept or inspected or copies given in electronic form as prescribed. So electronic copies are permitted. Option A wrongly limits electronic mode to inspection. Option C confuses the Registrar filing scheme of Section 398 with the company's own records.

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