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

Kaveri Infra Pvt Ltd allows members to inspect its minutes books. The company secretary proposes to provide inspection and copies through a secure electronic portal instead of paper. Which view is correct under the Companies Act, 2013?

Section 120 extends electronic form to inspection and supply of copies, not just to keeping records. Documents that members may inspect or copy can be made available electronically, provided the prescribed form and manner is followed. No unanimous member consent or age limit is stated.

  1. AInspection and copies cannot be given electronically; only physical inspection is valid
  2. BDocuments allowed to be inspected or copied may be inspected or given as copies in electronic form in the prescribed form and mannerCorrect
  3. CElectronic inspection is valid only where every member consents in writing
  4. DElectronic copies are valid only for documents older than eight years

Explanation

Section 120(b) covers documents allowed to be inspected or copies given under the Act, and says inspection or copies may be in electronic form in the prescribed form and manner. It does not require consent of all members or an age threshold. Hence the portal approach is valid if the prescribed manner is followed.

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