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

Sundaram Textiles Ltd wishes to cut storage costs by scanning its statutory registers and minutes and keeping them only on its secure servers. Under the Companies Act, 2013, which statement is correct?

Section 120 allows any document, record, register or minutes that a company must keep, or that may be inspected or copied, to be kept in electronic form. The company must follow the form and manner prescribed, so scanned and server-based records are permissible.

  1. ARegisters and minutes may be kept in electronic form in such form and manner as may be prescribedCorrect
  2. BStatutory registers must always be kept in physical form at the registered office
  3. CElectronic records are permitted only for documents that members are not allowed to inspect
  4. DElectronic form is allowed only after the Registrar gives written approval for each register

Explanation

Section 120 provides that any document, record, register or minutes required to be kept by a company, or allowed to be inspected or copied, may be kept in electronic form in the prescribed form and manner. The company must therefore follow the prescribed manner rather than seek approval for each register. The option requiring physical form ignores this provision.

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