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

Sagar Textiles Ltd wants to move its statutory registers, minutes and other records from bound books to computer systems. Which statement best reflects what Section 120 of the Companies Act, 2013 provides?

Section 120 lets a company keep any document, record, register or minutes that it must maintain in electronic form, in the prescribed form and manner. It is not confined to minutes or filed documents, and it does not demand the Registrar's prior approval.

  1. AAny document, record, register or minutes required to be kept by the company may be kept in electronic form, in such form and manner as may be prescribedCorrect
  2. BElectronic maintenance is permitted only for documents that the company files with the Registrar, and never for internal registers
  3. CElectronic maintenance requires prior written approval of the Registrar for every register
  4. DElectronic maintenance is permitted only for minutes, and registers must remain in physical form

Explanation

Section 120 allows any document, record, register, minutes etc. required to be kept by a company to be kept in electronic form, in the form and manner prescribed. It is not limited to minutes or to filed documents, and the section does not require prior Registrar approval.

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