Registers can be maintained in electronic form under Companies Act 2013.
Every Company is required to maintain statutory records in the form of registers, minutes etc. throughout its life.
1. Definition of “Record” is not given under Companies Act 2013. Whereas as per section 2(95)” if a word and expression is not define in CA 2013 but it is define in SCRA 1956/SEBI 1992/Depository act 1996, then it shall have same meaning respectively assigned under respective Act.
2. According to Section 2(i) of Depositories act 1996 Record means the records maintained in the form of books or Stored in a computer or in such other form as may be determined by regulations;
3. Rule 27 of Companies (Management & Administration) Rules 2014 says that A Listed Company or a Company having more than 1000 Shareholders shall maintain Records in electronic Format.
Rule 3 of above mentioned Rules says that an existing company registered under Companies act 1956, particulars shall be complied within Six months of commencement of Companies act 2013.
Who is responsible for security of electronic records?
Managing Director, Company Secretary or any officer of the Company as authorised by the Board is responsible for security of electronic records. He should ensure the following:
a) Provide adequate protection against unauthorized access, alteration or tampering of records
b) Ensure against loss of the records
c) Ensure that computer systems, software and hardware are adequately secured
d) Ensure that records are accurate, accessible, and capable of being reproduced for reference later
e) Ensure that records are at all times capable of being retrieved to a readable and printable form
f) Ensure records are kept in a non-rewriteable and non-erasable format
g) Ensure that at least one backup, taken at a periodicity of not exceeding one day and is authenticated and dated.
Panel provisions:-
If a company does not maintain a register of members or debenture-holders or other security holders or fails to maintain them in accordance with the provisions of sub-section (1) or sub-section (2), the company and every officer of the company who is in default shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees and where the failure is a continuing one, with a further fine which may extend to one thousand rupees for every day, after the first during which the failure continues.
Ankit Sharma
CAclubindia
