Essential details about a corporation, such as its members, directors, and charges, are listed in a statutory register. Statutory registers to be maintained by a company, as per the Companies Act of 2013.

Here are some more details regarding statutory registers:

• The business must designate a trustworthy individual to keep the statutory registers current.
• The company’s members and holders of debentures must have access to the registers for scrutiny.
• The registers must be delivered upon request to the registrar of companies.
• The Companies Act specifies the statutory register’s format.
• The business is required to preserve the statutory registers for eight years after the Last entry.
• The statutory registers must be accessible to the companies’ members and other stakeholders for inception.

Statutory registers to be maintained by a company are required to keep as follows:

• Register of members (MGT-1): This register lists the members of a company’s names,addresses, and shareholdings.
• The names, addresses, and debenture holdings of the company’s debenture holders are included in the register of Debenture holders (MGT-2).
• Names, addresses, and other information about the company’s directors and key managerial personnel are listed in the Register of Directors and Key Managerial Personnel (MGT-7) document.
• Charges register (CHG-7): The registered details of all charges made against the company’s assets.
• The information of all duplicate and renewed share certificates issued by the corporation is listed in the Register of Renewed and Duplicate Share Certificates (SH-2).
• Register of Sweet Equity Shares (SH-3): This register lists all sweet equity shares that the corporation has ever issued.
• Registers of shares/other securities bought back (SH-10): This register lists every share and additional security the corporation has repurchased.
• Loans and guarantees record: The record includes information on all loans and guarantees provided by the company.
• Register of foreign members: This register includes information about the companies’ members who decide outside of India.
• The details of all loans, guarantees, and securities the company has purchased are listed in the loan/security/guarantee/or securities Acquisition (MBP-2) register.
• Register about the company’s registers not held in its name (MBP-3): This register contains information about all the registers that do not fit in its name.
• The registry of contracts and agreements in which directors are interested lists all agreements and contracts in which the company’s directors are interested.

The statutory registers to be maintained by a company in paper copy or electronic form at the company’s registered office. The corporation is responsible for keeping the registers current and making sure that its members and directors may access them. The registrar of companies may impose fines for failure to keep the required registers. Punishment of up to Rs. 10 lakhs may be imposed on the corporation for failing to maintain statutory registers.

Specific Instances of How Keeping Statutory Registers Might Benefit a Business

• Investors and other interested parties are more willing to invest in a company that is open and accountable to its stakeholders.
• A corporation with a robust internal control framework is less likely to fall prey to fraud or other irregularities.
• A business is less likely to engage in pricey litigation if it can quickly settle conflicts.
• A business with solid credit standing will likely get funding on advantageous terms.

Conclusion

An essential component of corporate governance is statutory registries. They contribute to the transparent and accountable management of the business’s operations. Statutory registers to be maintained by a company to avoid fines, so businesses must take care to maintain their statutory registers correctly.