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Preservation of records and papers as per co.law

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Manoj

CEO

33 Points Posted on 10 February 2014

As per notification of mca dt.9.4.2003 schedule I and II there are 62 items mentioned and with a column for the duration for which the records should be preserved. 62 point states that whatever records are not mentioned in above 61 points should be preserved for 3 years.

Share transfer deed is not mentioned in above 61 points. Once the shares are transferred and recorded in registers etc. properly in a pvt.ltd. co. The shares transfer deed can be destroyed after three years adopting due procedures. Can anybody tell me that we as a pvt.ltd co. Have preserved share deeds of only last three years on which shares were transferred duley and properly. Are we right or wrong . We have scanned all the old share transfer deed?

Replies (1)

P C Agrawal

Registered independent director Past Ch

8229 Points Posted on 11 February 2014

The notification referred to by you deals with preservation of records by ROC and not by a company. As regards companies, following points may be noted:

1) Companies (Preservation & Disposal of Records) Rules 1966 requires register of members to be maintained by companies permanently.

2) As per Section 111(4) of Companies Act 1956, no time limit has been prescribed for making an application for rectification of register of members. One could file application with CLB after several years stating that he was not aware about alleged transfer of shares and hence register of members should be rectified. Company may be required to produce share transfer deeds before CLB for justifying its action.

In view of the above, it is not advisable to destroy share transfer forms after 3 years.