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CS Executive · Company Law and Practice · Members and Shareholders

Mahesh Foods Ltd maintains its register of members at its registered office in Pune but has not prepared any index of the names included in it. What is the position under the Companies Act, 2013?

This is a default. Section 88(2) requires every register kept under Section 88(1), including the register of members, to include an index of the names in it. The company and officers in default are liable to penalty under Section 88(5).

  1. ANo default, since an index is needed only for the register of debenture-holders
  2. BNo default, since an index is needed only if the company has over 1,000 members
  3. CDefault only if members request the index in writing
  4. DDefault, because every register under Section 88(1) must include an index of namesCorrect

Explanation

Section 88(2) says every register maintained under sub-section (1) shall include an index of the names in it. Failing to maintain the register as per sub-section (2) attracts the penalty in Section 88(5): Rs 3 lakh on the company and Rs 50,000 on each officer in default. No member-count threshold or request is required.

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