Maintenance of Statutory Records
What are Company’s Statutory Records?
Maintaining accurate records in order to function efficiently and adhere to the statutory requirements is one of the most important factors for an organization’s success. It is necessary for an organization to maintain well-organized records in order to ensure that its operations are as systematic as possible. For each fiscal year (financial year) companies must keep and maintain accounts, pertinent documents, and financial statements that provide a true and fair description of the company’s financial status. A company’s Statutory Register contains information about its shareholders, directors, and meetings. A company is also supposed to maintain normal accounting/bookkeeping records in addition to the above records. Generally, statutory registers are kept in loose-leaf binders or bound books, but records can be maintained electronically, too.
Maintenance of Statutory Records
These regulations are called the Companies Regulations, 2018 (related to Party Transactions and Maintenance of Related Records). According to the Act, the company’s books of accounts should be preserved for 10 years in the registered office. Records should contain clear explanations about transactions, fixed assets, purchases or sales, and loans, etc. How much detail must statutory registers contain, and what happens if you do not comply? Let’s take a quick look at each type of register.
Register of Member
The Companies Act requires companies to keep a shareholder register, which includes the names and addresses of shareholders, as well as the number and class of shares they own. A register should also include the amount paid, or considered paid, on shares, as well as the date of registration, or disenrollment, of individuals as shareholders.
Register of Directors
Each company must maintain an up-to-date list of its directors. Include the name and address of the individual and the address to which official mail can be sent. Additionally, you should give the person’s nationality, date of birth, occupation, and country of residence. A register of directors has to be made available to be inspected at the registered office of the company, or at the address the company provides to investors. The company should be notified as soon as possible if this address changes. On request, the company’s shareholders can inspect the register for free. A fee may be charged where applicable to other members of the public who want to see the register. The court can also order the company to allow the inspection of the register. Inspecting the register is open to all members of a company, as well as to members of the public upon payment of a fee.
Inspecting the Register of Shareholders:
Any member of the company can order a copy of the register. Those seeking access to the register have to provide their name and address, and explain why they want to see the register, as well as the name of any organization they represent, and whether or not they will share the information they obtain.
The company, however, can apply to a court to refuse the request if it believes that the request is not for a ‘proper purpose. A company can be fined if it simply refuses to comply with the request or fails to comply within the given timeframe. The law also allows a fine for individuals who falsely claim to be shareholders or disclose shareholder information to someone they know will use it improperly.
A company must contain all the information about the loans, assets, purchases, and sales to maintain the records. If the records have moved to another office or building, the shareholders must have acknowledgment about the whereabouts of the records.
Every contract, agreement, and instrument relating to transactions or arrangements with related parties must be kept at the company’s registered office. A company secretary or any other person authorized by the board is responsible for keeping the company register and record. They must be preserved in a proper manner. Upon a member’s request, the company shall provide relevant extracts from its register within seven days from the date of such request.
Let TAXOCRATE maintain your statutory records
TAXOCRATE can help you keep your company’s statutory records current, accurate, safe, and easily accessible.
Experts in our team assist clients in maintaining records for future reference. With over 30 years of experience in providing outstanding and quality maintenance of statutory records, we are a trusted name since 1985. Reports are prepared based upon the records that we maintain. By offering these details, we assist our customers in basic accounting and bookkeeping. We can assist you with company registration, firm registration, partnership registration, trademark registration, and proprietorship registration, among other things.
Please comment with your questions in the comment section or send us an email at firstname.lastname@example.org if you have any questions about the above-mentioned matters. Call or Whatsapp us on 0331-6644789 for a free consultation.
Provincial Tax Authorities
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