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CA Intermediate · Corporate and Other Laws · Accounts of Companies

Kaveri Industries Ltd has its registered office in Pune. Its board decides to keep the books of account at the company's Nagpur factory office instead. Which statement reflects the correct legal position under the Companies Act, 2013?

The books of account may be kept at a place in India other than the registered office if the board so decides by resolution. The company must then file a notice with the Registrar, giving the full address of that place, within seven days of the board's decision.

  1. ANot permitted; books must always be kept only at the registered office
  2. BPermitted if the board decides it by a resolution, and a notice in the prescribed form giving the full address of that other place is filed with the Registrar within seven days of the decisionCorrect
  3. CPermitted only if the members approve it by a special resolution and the Central Government consents
  4. DPermitted without any filing because the books are the company's internal records

Explanation

The Act requires books of account to be kept at the registered office, but the board may by resolution decide to keep them at any other place in India. The company must file a notice with the Registrar within seven days giving the full address of that place. A special resolution or government approval is not needed, so option C is wrong.

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