CS Executive · Company Law and Practice · Charges
Ramesh Iyer holds shares in Kaveri Foods Ltd and visits its registered office during business hours to inspect the register of charges and the instruments of charges. The articles impose no special restrictions. What fee can the company demand from him?
The company cannot charge any fee. Under section 85(2)(a), any member or creditor may inspect the register of charges and the instruments of charges during business hours without paying fees, so Ramesh, being a member, inspects free.
- ANo fee, because a member can inspect without any paymentCorrect
- BThe fee prescribed for inspection by any other person
- CA fee only for inspecting the instruments of charges, not the register
- DA fee only if he is also a creditor of the company
Explanation
Under section 85(2)(a), the register of charges and instruments of charges are open to inspection during business hours by any member or creditor without payment of fees. The prescribed fee under clause (b) applies to other persons, so it does not apply to Ramesh as a member.
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