Section 171 of the Companies Act, 2013
Section 171 of the Companies Act, 2013
Title: "Members’ right to inspect"
📘 Summary:
Section 171 gives members of a company the right to inspect certain registers and returns during business hours. This is part of ensuring transparency and accountability in the company's operations.
🔍 Key Provisions:
✅ 1. Right to Inspect Registers:
Members of the company can inspect the registers maintained under Section 170, which includes:
Register of directors and key managerial personnel (KMP), and
Register of their shareholding.
📅 2. Timing:
Inspection can be done during business hours, and
The company may require the member to give prior notice (maximum 14 days).
📑 3. Copies on Request:
A member can request copies or extracts from the register.
The company may charge a prescribed fee for providing such copies.
⚖️ Penalty for Non-Compliance:
If the company refuses inspection or fails to provide copies:
The company and every officer in default may be fined up to ₹5,000 for each day of default.
🧾 Purpose:
To ensure that members/shareholders have access to important information about the company’s leadership and their interests, allowing better governance and decision-making.
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