Under the Companies Act, 2013 and the respective rules regarding the inspection of records and registers, companies must allow their members to access and inspect certain documents (such as registers, minutes, and other statutory records). However, when the Articles of Association (AoA) are silent oRead more
Under the Companies Act, 2013 and the respective rules regarding the inspection of records and registers, companies must allow their members to access and inspect certain documents (such as registers, minutes, and other statutory records). However, when the Articles of Association (AoA) are silent on charging fees for such services, the company is generally not obligated to levy any fees for providing inspection, copies, or extracts.
Key Points to Understand:
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Statutory Rights of Members:
Members have a legal right to inspect the company’s records and registers. This right is protected under the Companies Act, and any fees imposed should not hinder that right. -
Role of the Articles of Association:
If the AoA specifically mention fees for providing copies or allowing inspections, then those terms must be followed. However, if the AoA are silent on this matter, there is no statutory mandate requiring the company to charge any fee for these services. -
Administrative Considerations:
While the company might incur minor administrative costs in processing requests, there is no requirement to pass on significant fees to members unless the AoA provide otherwise. -
Best Practices:
Many companies choose to provide access to these records without charge as a part of good governance and transparency. Even if minimal fees are charged, they should be reasonable and not deter members from exercising their statutory rights.
Conclusion:
If your company’s Articles of Association do not specify any fees for the inspection or copying of records and registers, you are not required to charge fees for these services. This approach aligns with the statutory intent to ensure that members can easily access important company documents.
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The Companies Act, 2013 lays out clear guidelines on when and where an Annual General Meeting (AGM) should be held. Here’s a quick overview: Timing: Public Companies: Must hold their AGM within 6 months from the end of the financial year. Private Companies: Should conduct the AGM within 15 months frRead more
The Companies Act, 2013 lays out clear guidelines on when and where an Annual General Meeting (AGM) should be held. Here’s a quick overview:
Timing:
Day:
Place:
Notice Requirements:
In essence, the AGM must be held within the prescribed timeframe, on a working day, and at a venue communicated well in advance to all shareholders. This ensures that the meeting is conducted efficiently and that shareholders can participate without any hindrances.
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