E Governance has been widely accepted in Revised Companies Act 2013. Its has taken foremost step to switch to paper less industries and conducting Board meeting through Video Conferencing. This two section deal with such has been discussed as under.
Books & Accounts
Section 128 States that Every Companies Shall Prepares and keeps at its registered office books of accounts and other relevant books and paper and financial statement for every financial years which gives true & fair views of the state of affairs of the company, including that of its branch office or offices, if any and explain the transaction both at its registered offices or its branches and such book shall on accrual basis and according to double entry system of accounting
If the books of account or other relevant documents are to be kept at other place in India as board of the director may decide, the companies shall within seven day shall inform to the registrar in writing such places , giving a full address of such places.
Further, it has been decided that a companies can keep the financial statements and other relevant paper in electronic mode as may be prescribed.
The Companies shall be deemed to complied with section 128 , even if the proper books of Accounts & related papers are being kept at branches and only summarized statement are sent to head office
If books of account or any such documents are maintained that should be open for inspection at the registered office or any other place in India by the director during business hours and if financial information are maintained outside India copies of such financial information made available by any of the director.
Books of Account shall be kept for the period of 8 financial years immediately preceding the financial years.
Failure to compliance the provision of section 128 than managing directors, whole time director who in charge of finance, the chief financial officer or any other person of the company charged by the board with the duty of complying with the provisions of this section ,shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees and which may extend to five lakh rupees or with both.
Section 173-Board of Director shall meet within thirty day from the dates of incorporation of the companies. Further Board of Directors shall hold minimum four meeting in every year and the time gap between two board meeting shall not exceed one hundred and twenty day. Provided that central Government by notification direct that the provision of this sub section may shall not apply to any class or description of companies.
Further Board of director can meet through video conferencing or through audio video means which are capable of recognizing the directors. Recording and storing the proceeding of such meeting along with date and time. Central Government may by notification, specify the matter which cannot be transact in the board meeting through audio video basis.
Every Director of the Companies shall be given a notice at their registered address not less than seven day in writing either by post or by electronics means
If meeting is called at shorter notice for the urgent need of the business than in such meeting at least one director should be independent director. If independents director are not present in the meeting than any decision taken in such meeting shall be circulated to all the directors and shall be final only on ratification there of received by at least one independent directors
Every officers of the company whose duty is to give notice under this section and who fails to do so shall be liable with a penalty of twenty five thousand rupees.
Tags Corporate Law