{"id":51279,"date":"2022-12-14T11:33:01","date_gmt":"2022-12-14T06:03:01","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=51279"},"modified":"2022-12-14T12:52:18","modified_gmt":"2022-12-14T07:22:18","slug":"statutory-registers-norms-under-the-companies-act-2013","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/statutory-registers-norms-under-the-companies-act-2013\/","title":{"rendered":"Statutory Registers: Norms under the Companies Act 2013"},"content":{"rendered":"\n<p>Organization under the Companies Act 2013 deals with\nseveral documents and statutory registers. Their apt maintenance is an absolute\nmandate for such firms. The said legislation encloses various provisions\nrelating to this subject matter. Improper maintenance of the statutory register\ncan derail daily operations and incur penalties for non-compliance. <strong>The companies Act\n2013<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/companies-act\/companies-act-2013.html\"><strong>[1]<\/strong><\/a><\/sup> mandates every firm to ensure proper upkeep of the statuary\nregisters, such as the book of accounts and financial statements, and keep them\nat their registered head office. The Act further requires companies to unveil\nand explain all the transactions which have affected the company or its\nbranches in any way. Registers enclosing such transactions should be kept on an\naccrual basis.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/statutory-registers-norms-under-the-companies-act-2013\/#What_Do_You_Mean_By_Statuary_Registers\" >What Do You Mean By Statuary\nRegisters?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/statutory-registers-norms-under-the-companies-act-2013\/#Types_of_Documents_That_Are_Considered_Statutory_Registers\" >Types of Documents That\nAre Considered Statutory Registers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/statutory-registers-norms-under-the-companies-act-2013\/#Information_Enclosed_In_the_Statuary_Registers\" >Information Enclosed In the\nStatuary Registers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/statutory-registers-norms-under-the-companies-act-2013\/#Register_of_Members\" >Register of Members<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/statutory-registers-norms-under-the-companies-act-2013\/#Register_Relating_To_Directors_and_KMP\" >Register Relating To Directors\nand KMP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/statutory-registers-norms-under-the-companies-act-2013\/#Register_of_Charges\" >Register of Charges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/statutory-registers-norms-under-the-companies-act-2013\/#Registers_Relating_To_Renewed_and_Duplicate_Share_Certificates\" >Registers Relating To\nRenewed and Duplicate Share Certificates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/statutory-registers-norms-under-the-companies-act-2013\/#Register_Relating_To_the_Employee_Stock_Options\" >Register Relating To the Employee\nStock Options<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/statutory-registers-norms-under-the-companies-act-2013\/#Register_Relating_To_SharesOther_Securities_Buyback\" >Register Relating To Shares\/Other\nSecurities Buyback<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/statutory-registers-norms-under-the-companies-act-2013\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Do_You_Mean_By_Statuary_Registers\"><\/span><strong>What Do You Mean By Statuary\nRegisters? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Statutory registers, as the name implies, are documents\nenclosing critical information about the company relating to its directors,\nmembers, key management personnel, etc. According to the Companies Act 2013, it\nis mandated for the companies to ensure proper upkeep of these registers. Any\nnon-conformity in this context can trigger penalties for the defaulting firms. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Documents_That_Are_Considered_Statutory_Registers\"><\/span><strong>Types of Documents That\nAre Considered Statutory Registers <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following are the vital document that are considered\nStatutory Registers:<\/p>\n\n\n\n<ul><li>Members\u2019 registers (MGT-1)<\/li><li>Debenture holders\u2019\nregister (MGT-2)<\/li><li>Registers enclosing\ndetail of Directors and KMP<\/li><li>Foreign Registers\n(MGT-3)<\/li><li>Register of duplicate or\nrenewed share certificates (SH-2) <\/li><li>Register of Sweat Equity\nShares (SH-3)<\/li><li>Register of charge\n(CHG-7)<\/li><li>Register of shares &amp;\nother securities buyback by the company (SH-10)<\/li><li>Register of\nloan\/security\/guarantee\/or securities\u2019 acquisition (MBP-2)<\/li><li>Register concerning the\ncompany\u2019s register not held in its name (MBP-3)<\/li><li>Register concerning the\ncontracts and arrangements in which company\u2019s director(s) have keen interest\n(MBP-4).<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Information_Enclosed_In_the_Statuary_Registers\"><\/span><strong>Information Enclosed In the\nStatuary Registers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every firm accepting deposits must keep the register for\ndeposits for 8 years. Such a duration will come into effect from the date\nentries were entered into such registers. Such registers must reflect the given\ndetails concerning the depositors; <\/p>\n\n\n\n<ul><li>Name, addresses, and PAN\nconcerning the depositors.<\/li><li>For under-age\ndepositors, parent information, <\/li><li>Nominee\u2019s details, <\/li><li>Date and amount of each\nnumber<\/li><li>Duration of such\ndeposit; <\/li><li>Interest rate;<\/li><li>Repayable date;<\/li><li>The due date concerning\nthe interest payment <\/li><li>date relating to\ninterest due;<\/li><li>Details concerning the\ndeposit insurance <\/li><li>Details concerning\ncharge\/security created; <\/li><li>Other information\nrelating to the deposit<\/li><\/ul>\n\n\n\n<p>All the entries being made to such registers must have the\napproval of the company\u2019s directors or secretory. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Register_of_Members\"><\/span><strong>Register of Members <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every company must ensure the proper maintenance of the\nfollowing registers concerning the members;<\/p>\n\n\n\n<ul><li>Registers of members having\nequity shares, <\/li><li>Registers of members\nhaving preference shares,<\/li><li>Register concerning the\ndebenture holders <\/li><li>Register concerning the\nsecurity holders<\/li><\/ul>\n\n\n\n<p>Registers must reflect the name index. Furthermore, the\nmember&#8217;s register (maintained by the company lacking share capital) must\nhighlight the given information of each member: <\/p>\n\n\n\n<ul><li>Name, address, contact\nmode, UIN, PAN, CIN, Nationality, Occupation, and Guardian information. <\/li><li>Date of starting of\nmembership&nbsp; <\/li><li>Date of membership\u2019s\ncessation <\/li><li>Other information as\nrequired<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Register_Relating_To_Directors_and_KMP\"><\/span><strong>Register Relating To Directors\nand KMP<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Companies Act 2013 mandates incorporated firms to\nmaintain and keep the register at a place not other than the registered office.\nAs the name suggests, such registers should highlight information about the\ncompany\u2019s directors and KMPs. Besides, registers must show the information\nconcerning the securities held by these officials in the company or its\nassociated entity. <\/p>\n\n\n\n<p>As per Rule 17, cited under the Companies (Appointment and\nQualification of Directors) Rules, 2014, the given details must be included in\nthe register.<\/p>\n\n\n\n<ul><li><strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/learning\/director-identification-number\/\">Director Identification Number<\/a><\/strong>\n(DIN)<\/li><li>Name of the Director(s)<\/li><li>Guardian\u2019s details<\/li><li>DOB<\/li><li>Nationality<\/li><li>Residential address&nbsp; <\/li><li>The date on which\nresolution concerning the director\u2019s appointment was passed<\/li><li>Designation <\/li><li>Date of office\u2019s\ncessation and reasons thereof<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Register_of_Charges\"><\/span><strong>Register of Charges <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Form Number-CHG-7 is a format for maintaining a register\nof charges.&nbsp; Such statutory registers\nmust enclose information about the charges registered with the registrar on\nproperty, assets, and companies. Further, it must also highlight;<\/p>\n\n\n\n<ul><li>The particulars of property acquired and subjected to charges, Details concerning modification of any charge. Just like other statutory registers, the upkeep of such registers should be performed at the company\u2019s registered office.<\/li><li>The timespan for maintaining the instrument of charge creation is eight years. It will come into effect from the date of satisfaction of the charge. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registers_Relating_To_Renewed_and_Duplicate_Share_Certificates\"><\/span><strong>Registers Relating To\nRenewed and Duplicate Share Certificates <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Details of each share certificate issued against the\nconsolidated or damaged certificate should be recorded in this register. Form\nSH 2 serves as the format for such statutory registers. The said format\nreflects the following particulars <\/p>\n\n\n\n<ul><li>Details of the\nindividual who received the certificate,<\/li><li>Issuance date,<\/li><li>No. of certificates in\nlieu of which the issuance of new certificates has been performed<\/li><li>Required changes cited\nin the member\u2019s register by apt cross-references in the \u201cRemarks column\u201d<\/li><\/ul>\n\n\n\n<p><strong><em>While maintaining such registers, make sure to keep the\ngiven facts in mind: <\/em><\/strong><\/p>\n\n\n\n<p>The registers should be subjected to the permanent preservation and&nbsp; should be kept under the secretary\u2019s custody or any other board-approved officials. All the entries must have the approval of the company\u2019s secretary or other authorized officials. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Register_Relating_To_the_Employee_Stock_Options\"><\/span><strong>Register Relating To the Employee\nStock Options <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the governing legislation, a company must use Form\nSH.06 to maintain the registers of Employee Stock Options. Such registers\nshould enclose the particulars of an option granted. Companies must maintain\nand store such statutory registers at the registered office or a place approved\nby the BODs. The entries enclosed in this register must have the approval of\nthe secretary or other board-approved official<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Register_Relating_To_SharesOther_Securities_Buyback\"><\/span><strong>Register Relating To Shares\/Other\nSecurities Buyback<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the governing legislation, companies must use Form\nSH 10 for proper updation and maintenance of such registers. The mandatory\ninclusions to this register include; <\/p>\n\n\n\n<ul><li>Date on which the special\nresolution concerning the buy-back of securities was passed<\/li><li>Date on which the\nboard\u2019s approval came into effect.<\/li><li>Number and price of\nsecurities or shares authorized for buyback <\/li><li>Date on which buy-back\noffer came into effect <\/li><li>Date on which the\nvalidity of the buyback offer came to an end <\/li><li>Details of the shares or\nsecurities that were acquired under buy-back scheme<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is evident from the above that the statutory register encloses some of the critical information about the company which bolsters its legal existence. Maintenance of statutory registers cannot be performed through casual or volunteer acts. It is a legal requirement that stays in effect throughout the entire lifetime of the company. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/types-of-companies-under-companies-act-2013\/\">Types of companies under Companies Act, 2013<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Organization under the Companies Act 2013 deals with several documents and statutory registers. Their apt maintenance is an absolute mandate for such firms. The said legislation encloses various provisions relating to this subject matter. Improper maintenance of the statutory register can derail daily operations and incur penalties for non-compliance. The companies Act 2013[1] mandates every [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":51280,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[2954],"acf":{"service_id":"1"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":13525,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51279"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=51279"}],"version-history":[{"count":5,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51279\/revisions"}],"predecessor-version":[{"id":51287,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51279\/revisions\/51287"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/51280"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=51279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=51279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=51279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}