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CA Intermediate · Corporate and Other Laws · Accounts of Companies

Veda Textiles Ltd, a public company incorporated in Pune, has its registered office in Pune. Its directors want to keep the books of account at the company's factory in Surat, which is in another State. Under the Companies Act, 2013, what is the correct position?

Books of account may be kept at a place other than the registered office, in India, if the Board passes a resolution and the company files the prescribed notice with the Registrar within seven days. Central Government approval is not needed, nor is the registered office compulsory.

  1. ABooks may be kept at the factory only if the Board passes a resolution and the company files a notice with the Registrar in the prescribed form within seven daysCorrect
  2. BBooks must always be kept at the registered office and can never be kept elsewhere
  3. CBooks may be kept at the factory only after the Central Government gives written approval
  4. DBooks may be kept at the factory without any resolution or intimation, as the Board has full discretion

Explanation

The Act requires books of account to be kept at the registered office, but the Board may decide by resolution to keep them at any other place in India. The company must then file a notice of the full address of that place with the Registrar within seven days of the Board's decision. Option B ignores this permission, and C wrongly requires Central Government approval.

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