Index and Inspection of Members Flashcards

Flashcards covering the legal requirements for maintaining an index of members, update timelines, inspection rights, and associated penalties based on Sections 111, 112, and 113.

Under what condition must a company keep an index of its members' names?

Every company having more than 50 members must keep an index, unless the register of members is in such a form as to constitute an index in itself.

According to Section 111, how many days does a company have to update the index after an alteration is made to the register of members?

The company shall make necessary alterations in the index within 14 days after the date on which the alteration in the register is made.

What is the primary purpose of the index of members in relation to the register?

To contain sufficient indications to enable the account of each member in the register to be easily found.

Where should the index of members be kept?

The index shall at all times be kept at the same place as the register of members, which is typically the registered office of the company.

Who is liable if a fault is made in complying with the provisions of Section 111?

The company and every officer of the company are liable to such penalties as the commission shall specify by regulation.

When must the register and index of members be open for inspection by members?

They shall be open during business hours, except when the register is closed under the provisions of the Act.

What is the minimum amount of time per day that must be allowed for the inspection of the register and index?

Not less than two hours in each day shall be allowed for inspection.

What is the cost for a member of the company to inspect the register and index of members?

Inspection by any member of the company is without charge.

What are the requirements for a person to obtain a copy of the register or any part of it?

They must have the permission of the company (which must not be unreasonably withheld) and pay the amount prescribed by the commission (CAC) or a lesser amount prescribed by the company.

Within what period must the company send a requested copy of the register to a person?

Within a period of 10 days commencing on the day after the day on which the requirement is received by the company.

According to Section 113, what happens if a third party who keeps the register of members defaults on producing it?

The other person is liable to the same penalties as if they were an officer of the company who was in default.