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CA Intermediate · Corporate and Other Laws · Accounts of Companies

Veda Textiles Ltd, a public company, has its registered office in Surat. Its Board wants to keep the books of account at a godown in Vapi, Gujarat, instead of at the registered office. Which of the following is the correct legal position under the Companies Act, 2013?

The company may keep its books of account at a place in India other than the registered office if the Board so decides and files a notice with the Registrar within seven days of the decision, stating the full address. No member approval or government permission is needed.

  1. AIt is not allowed; books of account must be kept only at the registered office
  2. BIt is allowed if the Board resolves it and the company files a notice in the prescribed form with the Registrar within seven days of the Board decision, giving the full address of that placeCorrect
  3. CIt is allowed only if the members approve it by a special resolution
  4. DIt is allowed only after prior approval of the Central Government

Explanation

Books of account may be kept at the registered office or at any other place in India decided by the Board. The company must file a notice with the Registrar in the prescribed form within seven days of the Board decision, giving the full address of that place. A special resolution or Central Government approval is not required, so those options are wrong.

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