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CS Professional · Compliance Management, Audit and Due Diligence · Secretarial Audit

Orion Pharma Ltd is subject to secretarial audit. The CS in practice finds that the finance head withholds minute books and statutory registers. Which provision of section 204 is most directly breached?

Withholding minute books and registers breaches section 204(2), which makes it the company's duty to give all assistance and facilities to the company secretary in practice for auditing the secretarial and related records.

  1. ASection 204(2): the company's duty to give all assistance and facilities for auditing secretarial and related recordsCorrect
  2. BSection 204(3): the Board's duty to explain observations
  3. CSection 204(1): the duty to appoint an auditor with a turnover test
  4. DSection 204(4): the duty to file the report with the Registrar within thirty days

Explanation

Section 204(2) makes it the company's duty to give all assistance and facilities to the company secretary in practice for auditing secretarial and related records. Withholding minute books and registers breaches it. Subsection (3) deals with explaining remarks, and (4) is the penalty, which has no filing timeline.

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