For the smooth functioning of any organization and to adhere to the statutory requirements, it is necessary to maintain records and register. Maintenance of such records is required to fulfil statutory, disclosure, statistical, and MIS purposes.
Maintaining such records helps to ensure that all the operations are held legally and systematically in the organization. As per the Companies Act,2013, every company has to maintain such records and has to register head office books of accounts, along with all the financial statements of the financial year. These records and documents provide a fair picture of the company’s position including branch offices and other offices.
Furthermore, it requires a transaction explanation that affects both registered as well as its branch offices. Such records and books must be maintained every year with the following double entry, bookkeeping system.
Statutory books are the public records about the company’s shareholders, directors, and all the meetings held. These details should be mentioned in the normal accounting records that companies keep. Most of the companies keep their statutory records or registered as a bound book. However, they are allowed to keep it anyway like computer records. According to the Companies Act, every company must maintain the record before the registrar of companies within pre-decided time and prescribe fees by the ROC.
Every company must maintain the records at the registered office, for the deposits accepted or renewed for 8 years. This period should start from the financial year and an entry should be made in the register. Such register must have the following documents
All the entries entered in the register must be authorized by the director or secretary of the company.
Every company has to maintain registers of their members with the following documents:
The registers must have index names. If the company doesn’t have the share capital, must have the following details of the member:
Companies Act 2013 demands a company to maintain a register at a registered office containing particulars about the directors and Key Managerial Personnel. Also, it should comprise details of the securities held by them in the company or its subsidiary holding. Also, as per Rule 17 of Companies Rules 2014, the register must have the mentioned particulars at the registered office
Register of charges must be maintained as Form No. CHG 7. The register must have details of the register charges with the registrar on assets, property, companies, or any other particulars of the property that was subject to charges. The register of charges should be kept safely in the registered office. And the instrument that created charges must be preserved for 8 years from the date of satisfaction of the charge.
In exchange for certificates that are subdivided or in replacement of certificates mutilated, defaced, torn out, decrepit are duly utilized. All the destroyed or lost certificates must be entered in Renewed and Duplicate Share Certificates which need to be maintained SH-2. A company should mention the name of the person to whom the certificate has been issued, the issue date and a number of certificates, and the required changes in the Register of members
Things to keep in mind while maintaining such registers:
According to the Companies Act, 2013, a company must maintain Form No.SH-6 for the Employee Stock Options and should enter the particulars of an option granted. These registers should be kept in the company’s registered office or at any other place as per the board of directors. All the entries made in the register should be authorized by the company’s boards of directors or the company secretary.
According to the Companies Act, 2013 a register and other securities bought backs need to be mentioned in Form SH-10 by the company. Details need to be included as follows:
Statutory maintenance means to make sure that your business is running with all relevant statutory requirements and regulatory laws and legislation.
Statutory requirements are the requirements mandated by the law of government. These laws are enacted by passing the law in the legislative assembly or parliament.
Statutory regulation refers to professions that must be registered with a professional regulatory body by law. Each regulator maintains a register of individuals who meet the required standards set for the specific profession.
The purpose of the statutory regulations to protect the public from the risk of poor practice.