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

Sapphire Infra Ltd refuses inspection of its registers to a member, Ms. Nair, who complains. Which statement correctly describes the remedy available to her under section 94?

The Central Government may, by order, direct immediate inspection or that the extract be allowed forthwith. Section 94(5) gives this power, and the company and officers in default also face the daily penalty under section 94(4). A civil suit is not the only route.

  1. AOnly a civil suit for damages is available
  2. BThe Central Government may by order direct immediate inspection or that the extract be forthwith allowedCorrect
  3. CThe company's auditor must grant the inspection on behalf of the company
  4. DThe Registrar must be paid a fee before any remedy arises

Explanation

Section 94(5) empowers the Central Government to direct, by order, an immediate inspection of the document or that the required extract be forthwith allowed. This is in addition to the penalty under section 94(4). The auditor has no such role.

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