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CA Intermediate · Corporate and Other Laws · Accounts of Companies

Meridian Pharma Ltd, an unlisted public company, has its registered office in Pune. Its Board wants to keep the books of account at the company's Hyderabad factory instead. The directors are unsure of the legal position on where books of account may be kept. Which statement is correct under the Companies Act, 2013?

Books of account may be kept at any place in India other than the registered office if the Board resolves so and the company files the prescribed notice with the Registrar within seven days of the decision. No government approval is required, and the registered office is not compulsory.

  1. AThe books may be kept at any place in India if the Board so decides by a resolution and the company files a notice in the prescribed form with the Registrar within seven days of the Board's decisionCorrect
  2. BThe books must always be kept at the registered office and can never be kept elsewhere
  3. CThe books may be kept outside India without any filing, as the Board decides
  4. DThe books may be kept at any place in India only after prior approval of the Central Government

Explanation

Books of account may be kept at a place in India other than the registered office if the Board decides by resolution, and the company files the prescribed notice with the Registrar within seven days of that decision, giving the full address of that place. No Central Government approval is needed. Keeping them at the registered office is not the only permitted option.

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