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

Sunrise Textiles Ltd wishes to maintain its statutory registers and minutes only on its servers and allow members to inspect them electronically. Which statement correctly reflects Section 120 of the Companies Act, 2013?

Section 120 allows a company to keep documents, registers and minutes, and to allow inspection or give copies, in electronic form. This must be done in the form and manner prescribed by the rules. It is not limited to Registrar filings, and no case-by-case approval is needed.

  1. ASection 120 permits documents required to be kept or allowed to be inspected to be maintained, inspected or copied in electronic form in the form and manner prescribedCorrect
  2. BSection 120 permits electronic maintenance only after the Registrar grants specific written approval for each register
  3. CSection 120 applies only to documents filed with the Registrar and not to registers kept by the company
  4. DSection 120 permits electronic maintenance in any form chosen by the company without regard to the rules

Explanation

Section 120 says any document, record, register or minutes required to be kept, or allowed to be inspected or copied, may be kept, inspected or given in electronic form in such form and manner as may be prescribed. Option B invents a Registrar approval, and option D ignores the prescribed manner. Option C is wrong because the section covers documents kept by the company.

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