20 September 2014
Books of accounts financial statements and relevant books etc kept by the company can be inspected by Directors only - Section 128(3)
Inspection of books of accounts in respct of subsidiary company of the company can be done by any person authorized by Board resolution in this behalf. - proviso to section 128(3)
20 September 2014
I am confused about this section.
Earlier in CA 1956 it was written that inspection can be done by directors but because of a judgement By Supreme court in VAKHARIA vs SUPREME GENERAL FILM EXCHANGE, the court ruled that an agent can also be appointed because it is not restricted in CA 1956.
In CA 2013, restriction on agent or representative is specifically in case where financial info is sought when books are kept outside india. Sec 128(3) does not state that a director can't appoint agent or representative and neither it states that only a director should inspect.
20 September 2014
Rule 4 of Companies (Accounts) Rules, 2014.
Conditions regarding maintenance and inspection of certain financial information by directors.- (1) The summarised returns of the books of account of the company kept and maintained outside India shall be sent to the registered office at quarterly intervals, which shall be kept and maintained at the registered office of the company and kept open to directors for inspection. (2) Where any other financial information maintained outside the country is required by a director, the director shall furnish a request to the company setting out the full details of the financial information sought, the period for which such information is sought. (3) The company shall produce such financial information to the director within fifteen days of the date of receipt of the written request. (4) The financial information required under sub-rules (2) and (3) shall be sought for by the director himself and not by or through his power of attorney holder or agent or representative.
20 September 2014
But rule 4 is for cases where information is kept and maintained outside India and not within India............So I guess an agent can be appointed for inspection of accounts kept & maintained in India????
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