Statutory Registers in Tamil Nadu: Importance and Maintenance

Introduction

As the name implies, statutory registers in Tamil Nadu are essential records that corporations must maintain to document critical information about the organization. These registers may include details about members, directors, key managerial personnel (KMP), and other relevant data. Under the Companies Act of 2013, several statutory registers must be consistently updated. Non-compliance with these requirements can lead to substantial penalties for both the corporation and its officials. This blog will explore the significance of statutory registers in Tamil Nadu and the importance of keeping them current.

Importance of Maintaining Statutory Registers

Maintaining these records helps ensure that an organization’s operations run smoothly. According to the Companies Act of 2013, every corporation must keep and maintain accurate books of accounts, relevant documents, and financial statements at its registered office for each financial year (FY). These records should provide a true and fair view of the company’s financial position, including any branch offices. The law mandates that these books be maintained on an accrual basis using the double-entry bookkeeping system, and all transactions affecting registered and branch offices must be clearly documented. The following is a list of statutory registers that companies in Tamil Nadu are required to maintain as per the Companies Act of 2013:

  1. Members’ Register (MGT-1)
  2. Register of Debenture Holders or Other Security Holders (MGT-2)
  3. Expatriate Register (MGT-3)
  4. Directors’ Register and KMP
  5. Register of Renewed or Duplicated Share Certificates (SH-2)
  6. Register of Sweat Equity Shares (SH-3)
  7. Register of ESOPs (SH-6)
  8. Register of Repurchased Shares and Other Securities (SH-10)
  9. Register of Charges (CHG-7)
  10. Register for Loans, Guarantees, Security Deposits, and Purchase of Securities (MBP-2)
  11. Register of Investments Not Held in the Company’s Name (MBP-3)
  12. Register of Contracts and Arrangements (MBP-4), detailing contracts and agreements involving directors’ interests.

Registration Process for Statutory Registers

Any business accepting deposits is required to maintain one or more registers for the deposits taken or renewed at their registered office for a minimum of eight years. This period starts from the financial year in which the entry was made. The statutory registers in Tamil Nadu must include the following information about depositors:

  • Name, PAN, and address of the depositors
  • Details of the minor’s guardian, if applicable
  • Information about the nominee
  • Amount and date of each deposit
  • Deposit receipt number
  • Interest rate
  • Duration of the deposit
  • Date of repayment
  • Due date for interest payments
  • Details of deposit insurance
  • Information regarding any charge or security created
  • Any additional details related to the deposit

Tamil Nadu Shops and Establishments Act

The entries in these registers must be authenticated by the Board of Directors (BOD) of the company. The 1947 Tamil Nadu Shops and Establishments Act and the 1948 Rules govern all shops and commercial establishments in the areas designated by the Government of Tamil Nadu. This Act aims to protect employee rights, outlining regulations for salary payments, working conditions, hours, breaks, overtime, holidays, leaves, maternity leave, benefits, child labor laws, and record-keeping requirements.

Conclusion

Statutory registers in Tamil Nadu provide a detailed account of a company’s shareholders, directors, and meetings. These records are as vital as standard accounting documents and contain crucial information about the organization, including data on its directors, members, and key management personnel. Maintaining these statutory registers is essential for compliance and effective corporate governance.

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