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

Mr. Arvind Rao, a member of Kaveri Foods Ltd, visits the registered office during business hours and asks to inspect the register of members and take handwritten extracts. The company demands an inspection fee. What is the correct position under the Companies Act, 2013?

Inspection and extracts by a member are free during business hours. Section 94(2) allows members to inspect registers without fee, and section 94(3)(a) allows extracts without fee. Only copies of the register or entries, and inspection by other persons, attract the prescribed fees.

  1. AThe company may charge a fee for inspection but not for extracts
  2. BThe company may charge a fee for both, as fixed by its board
  3. CInspection and extracts by a member are free of charge during business hoursCorrect
  4. DInspection is free but only after written permission of the Registrar

Explanation

Section 94(2) lets any member, debenture-holder, other security holder or beneficial owner inspect the registers during business hours without fee. Section 94(3)(a) lets them take extracts without fee. Fees apply to other persons for inspection and to copies required under 94(3)(b).

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