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

Kaveri Textiles Ltd wants to stop printing its statutory registers and minute books and keep them on its secure servers instead. Under the Companies Act, 2013, which statement is correct?

Section 120 allows any document, record, register or minutes that a company must keep, or that may be inspected or copied, to be kept in electronic form. The form and manner must be as prescribed. No separate approval of the Registrar is required for each register.

  1. AAny document, record, register or minutes required to be kept by the company may be kept in electronic form, in such form and manner as prescribedCorrect
  2. BElectronic form is allowed only for documents that members may inspect, and not for records the company must keep
  3. CElectronic records are permitted only after the Registrar gives prior written approval for each register
  4. DElectronic form is permitted only for minutes and not for registers

Explanation

Section 120 says any document, record, register, minutes etc. required to be kept by a company, or allowed to be inspected or copied, may be kept in electronic form in the prescribed form and manner. The option restricting electronic form to inspection documents is wrong because section 120 covers both limbs (a) and (b).

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