According to Section 120, the documents, records, registers, minutes, etc. may be kept and inspected in electronic form.
Rule 27 of Companies (Management and Administration) Rules, 2014 initially mandated every listed company or a company having not less than one thousand share holders, debenture holders and other security holders to maintain its records, as required to be maintained under the Act or rules made there under, in electronic form.
However, MCA has revised the rules namely the Companies (Management and Administration) Second Amendment Rules, 2014, and amended rule 27 as –
- In rule 27, in sub-rule (1) and in the Explanation, for the word “shall”, the word “may” shall be substituted.
Therefore, the companies have now been given an option to maintain the records in electronic form. 27. As per section 124(6), all the shares