Key Statutory Records to Be Kept in Electronic Form Under the Companies Act, 2013

Maintaining statutory records is crucial for legal compliance, transparency, and smooth business operations. Under the Companies Act 2013 statutory records, companies must maintain registers, minutes of meetings, financial records, and shareholding details. These records ensure accountability and help in audits, legal proceedings, and regulatory inspections. Proper documentation aids in dispute resolution, investor confidence, and corporate decision-making. Non-compliance can lead to penalties, legal action, and reputational damage. Thus, keeping statutory records updated is essential for corporate governance and long-term sustainability.

The Companies Act 2013 allows companies to maintain statutory records electronically, ensuring compliance with digital record-keeping standards.

The relevant provisions in the Companies Act 2013 statutory records include

Section 120 Maintenance of Records in Electronic Form – Companies can maintain records, registers, returns, and documents in electronic mode. Records must be secured, accessible, and retrievable when required. Companies must comply with prescribed security measures to prevent unauthorized access.

Rule 27 & 28 of the Companies (Management and Administration) Rules, 2014 Specifies that registers and documents stored electronically must be authenticated with a digital signature. The electronic records should have timestamps and audit trails to ensure integrity.

Section 128 Books of Accounts in Electronic Mode - Companies can keep books of accounts electronically at a place decided by the Board. The records must remain accessible for at least eight financial years for regulatory compliance.

Section 173(2) Board Meetings via Electronic Means - Allows companies to conduct board meetings through video conferencing and maintain digital records of proceedings.

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The following are the key statutory records under the Companies Act -

Registers and Records

Register of Members (Section 88) Details of shareholders, their holdings, and changes in ownership.

Register of Directors and Key Managerial Personnel (KMP) (Section 170) Information about directors, KMPs, and changes.

Register of Charges (Section 85) Details of company assets pledged as security.

Register of Share Transfers and Allotments Records of share transactions and new share issues.

Financial Records

Books of Accounts (Section 128) Profit and loss accounts, balance sheets, and related financial statements.

Annual Returns (Section 92) Details of financial performance and compliance.

Minutes of Meetings (Section 118) Resolutions and discussions from Board and General Meetings.

Other Statutory Documents

Board Resolutions and Meeting Notices (Section 173) Records of board decisions.

Registers of Deposits (Section 73) Details of company deposits.

Corporate Social Responsibility (CSR) Records (Section 135) Documentation of CSR activities and expenditures.

Electronic Record-Keeping Compliance

Format and Authentication As per the Companies Act 2013 statutory records, the record must be maintained in readable, retrievable, and secure electronic formats. Digital signatures of authorized officials are required for authentication. Electronic records must also comply with the Information Technology Act, 2000, regarding digital signatures and data security.

Accessibility and Retention As per Section 128 of the Companies Act 2013, statutory records should be accessible for at least eight financial years. Electronic records must be stored at a location approved by the Board of Directors and be available for inspection by regulatory authorities such as the Registrar of Companies (ROC).

Security and Protection Under the Companies Act 2013 statutory records, companies must implement cybersecurity measures to prevent unauthorized access, alteration, or deletion of statutory records, such as the Register of Members, Books of Accounts, and Minutes of Meetings. These records must have timestamps, audit trails, and backup systems to ensure data integrity. Compliance with the Companies (Management and Administration) Rules, 2014, is essential, as it outlines protocols for maintaining electronic records securely and efficiently.

Filing and Reporting Statutory records under the Companies Act 2013 statutory records must be electronically filed with the Ministry of Corporate Affairs (MCA) through online portals such as MCA21. Annual returns, financial statements, and other filings must be submitted in prescribed formats, using e-forms with digital signatures.

1. Companies Act 2013 statutory records can be retrieved instantly from anywhere, reducing physical storage constraints.
2. Facilitates remote access to statutory records under the Companies Act 2013 for stakeholders, auditors, and regulators.
3. Reduces errors through automated record-keeping and validation mechanisms, ensuring compliance with Companies Act 2013 statutory requirements.
4. Ensures timely filing and reporting of statutory records mandated by the Companies Act 2013 to regulatory authorities like the Ministry of Corporate Affairs (MCA).
5. Eliminates expenses related to physical storage, printing, and paper handling for Companies Act 2013 statutory records.
6. Encryption, access controls, and digital signatures protect statutory records under the Companies Act 2013 from unauthorized alterations.
7. Simplifies statutory audits, inspections, and due diligence by making Companies Act 2013 statutory records easily accessible.

1. Cyberattacks, hacking, ransomware, and data breaches can compromise sensitive Companies Act 2013 statutory records.
2. Failure to meet statutory requirements for Companies Act 2013 statutory records, such as record retention, audit trails, and digital signatures, can lead to penalties.
3. System crashes, software malfunctions, and power outages can lead to data loss or inaccessibility of Companies Act 2013 statutory records.
4. Unauthorized modifications or tampering with Companies Act 2013 statutory records can affect audit reliability.
5. Poorly managed Companies Act 2013 statutory records can become difficult to retrieve or format inconsistently over time.
6. Lack of awareness about proper digital record-keeping practices for Companies Act 2013 statutory records can result in errors or non-compliance.

1. Maintain Companies Act 2013 statutory records in accordance with Section 120 and Section 128.
2. Use digital signatures for authentication as per the Information Technology Act, 2000.
3. Ensure statutory records are retained for at least eight financial years as mandated.
4. Implement encryption and access controls to prevent unauthorized modifications to Companies Act 2013 records.
5. Use cloud-based storage with automated backups to protect statutory records against data loss.
6. Conduct periodic audits to ensure compliance with statutory regulations under the Companies Act 2013.
7. Educate employees on data privacy and security policies for statutory records.
8. Conduct quarterly or annual reviews of Companies Act 2013 statutory records to identify discrepancies.
9. Stay updated with MCA notifications and amendments related to electronic statutory record-keeping.

Maintaining Companies Act 2013 statutory records in electronic form is a significant step toward enhancing corporate governance, compliance, and efficiency. The Act permits companies to digitize key records such as the Register of Members, Books of Accounts, Minutes of Meetings, and Financial Statements, ensuring easy accessibility, accuracy, and security.

Our speciality at Global Jurix is offering corporations full-service legal solutions that guarantee seamless compliance and safeguard their business interests and intellectual property. Some of our services included are copyright registration, trademark registration, Company Registration, and more.

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