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

Meera, the company secretary of Kaveri Infra Ltd, is asked whether a member's right to inspect a register can be met electronically. Under Section 120, which is correct?

Section 120 extends to documents the company must allow to be inspected or copied. Such inspection or copies may be provided in electronic form, in the prescribed form and manner. So it is wrong to say inspection must be physical or that copies alone may be electronic.

  1. AInspection must always be physical because Section 120 deals only with storage
  2. BInspection may be given electronically only if the member pays a fee fixed at the AGM
  3. CDocuments that the company is allowed to let a person inspect, or give copies of, may be inspected or supplied in electronic form in the prescribed form and mannerCorrect
  4. DCopies may be given electronically but inspection can never be given electronically

Explanation

Clause (b) of Section 120 covers documents allowed to be inspected or copied to a person under the Act, which may be inspected or given in electronic form as prescribed. So inspection is not restricted to physical mode. The AGM fee relates to Section 20 requests for a particular delivery mode, not this.

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