INTRODUCTION:
To run organization in a smooth manner, there is a need of efficiency in the organization, so it requires a systematic approach by maintaining records and registers. Statutory register is essential for an effective organization.
MEANING:
Statutory register contains essential information related to company’s current position and that must be accordance with Companies Act, 2013.
DEFINITION:
Statutory register means register maintained in pursuance of statutory requirement and Statutory requirement means a requirement imposed by provision made by or under an enactment.
There are several statutory registered maintained under section 83 of the Companies Act, 2013.
- Register of Company
- Register of Members
- Register of Director and Key Managerial Personnel
- Register of Charge
- Register of Renewed and Duplicate Share Certificate
- Register of Employee Sock Option
- Register of Shares / Other Securities Bought Back
- REGISTER OF COMPANY:
Every must maintained its register of company, as it is very essential document for the company records. In this register the details must contain the information of Depositor. Such as Name, Address, Interest Rate, Maturity Date, Deposit receipt and amount, etc
- REGISTER OF MEMBERS:
Every Company must maintain Register of Member. Class of Equity and Preference shareholder register shall be maintained separately. In this
register, information related to member like Name, Address, Email, Occupation, Nationality, etc must be maintained.
Format: MGT-1
Authentication of Entries:
Authentication of entries shall be inspected by Company Secretary, if such inspection is not inspected by Company Secretary, then Board of Director shall inspect such entries at Board Meeting.
Inspection:
For Member, no fees required
For any other person, prescribed fees are required but does not exceed Rs. 50/-
Penalty: Minimum Rs. 50000/-
Maximum Rs. 3 lakhs + Rs. 1000/- per day if default continues.
- REGISTER OF DIRECTOR AND KEY MANAGERIAL PERSONNEL:
Since, the Board of Director is the representative of the Company, so it shall mandatory to maintain the records and registers of Directors and Key Managerial Personnel such as Name, Address, Date of Birth, Nationality, etc. The Section 170 of the 17 Rule compliance with this.
Format: No Prescribed
Authentication of Entries:
Authentication of entries shall be inspected by Company Secretary, if such inspection is not inspected by Company Secretary, then Board of Director shall inspect such entries at Board Meeting.
Inspection:
Inspection of register can be done in business hours and members has an access to copies for free of cost on request within 30 days.
In Annual General Meeting of the company, the register shall be open for inspection.
Penalty:
Company and officer in default, Minimum Rs, 50000/-
Maximum Rs, 5 lakhs.
Officer in default. Imprisonment (max upto 3 years) and penalty remains as same as that Company.
- REGISTER OF CHARGES:
Register of Charge must be maintained in accordance with the Form No. CHG.7 by a Company. The Register of Charge is the register which is registered with the registrar regarding assets, property, companies, etc. This must be permanently preserved by the company.
Format: CHG.7
Authentication of Entries:
Authentication of entries shall be inspected by Company Secretary, if such inspection is not inspected by Company Secretary, then Board of Director shall inspect such entries at Board Meeting.
Inspection:
Inspection can be done by members and creditors without any fees.
Any other person needs to pay prescribed fees.
Penalty:
There is no provision address towards penalty under the Act.
- REGISTER OF RENEWED AND DUPLICATE SHARE CERTIFICATE:
For the renewal and issuance of duplicate share certificate one need to follow the condition,
- Share Certificate must be defaced, old or torn, worn out, decrepit, etc.
- In lieu of Certificate which are destroyed or lost.
Format: SH.2
Authentication of Entries:
Authentication of entries shall be inspected by Company Secretary, if such inspection is not inspected by Company Secretary, then Board of Director shall inspect such entries at Board Meeting.
Inspection: No Provision is prescribed
Penalty:
Minimum upto 5 times of the face value of the shares.
Maximum upto 10 times of the face value of the shares of Rs. 10 crores
(Whichever is higher).
- REGISTER OF EMPLOYEE STOCK OPTION:
Register Of Employee Stock Option must be maintained by Company. In these details of Employee, who is subscribing the shares of the company must be mentioned such as name, employee identification number, number of shares, etc.
Format: No format is prescribed.
Authentication of Entries:
Authentication of Entries:
Authentication of entries shall be inspected by Company Secretary, if such inspection is not inspected by Company Secretary, then Board of Director shall inspect such entries at Board Meeting.
Inspection:
For Member, no fees required
For any other person, prescribed fees are required but does not exceed Rs. 50/-
- REGISTER OF SHARES/ OTHER SECURITIES BOUGHT BACK:
If the Company wants bought back the shares/ other securities from its members then as per the companies Act, this register needs to be ment Format: SH 7
Authentication of Entries:
Authentication of entries shall be inspected by Company Secretary, if such inspection is not inspected by Company Secretary, then Board of Director shall inspect such entries at Board Meeting.
Inspection:
No Provision is prescribed.
Penalty:
Company, Minimum Rs. 1 lakh
Maximum Rs. 3 lakhs
Officer in default, Imprisonment (maximum up to 3 years) and penalty remains as same as the company
CONCLUSION:
Proper maintenance of register can make a company free from penalised. Accessible of register can bring transparency in the organisation. Malpractice and unfair practice can be eliminated by the maintenance of statutory register. Stakeholder has a right to get every corner of transaction of the company because their interest is vested in the company.
BIBLIOGRAGHY:
- https://neerajbhagat.com/blog/index.php/statutory-registers-to-be-maintained-by-a-company/
- https://cleartax.in/s/maintenance-statutory-registers
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