Section 220 of the Companies Act, 2013
Section 220 of the Companies Act, 2013 pertains to the preservation of books and papers of amalgamated companies.
📜 Section 220 – Preservation of Books and Papers of Amalgamated Companies
🔹 Key Provisions:
Responsibility After Amalgamation:
When two or more companies are amalgamated, the books and papers of the amalgamating company or companies (i.e. the ones getting merged) must be preserved by the company in which the amalgamation has taken place (i.e. the transferee company or the new entity).
Time Period:
The books and papers must be preserved for such period as may be prescribed by the Central Government.
✅ Purpose:
To ensure that important documents such as financial records, statutory registers, board minutes, etc. of the amalgamated companies remain available for inspection, audits, regulatory compliance, or legal purposes.
⚠️ Penalty for Non-Compliance:
While Section 220 itself doesn't specify a penalty, non-preservation may attract penalties under other provisions related to record-keeping and inspections (e.g., Sections 128, 206).
RELATED Blog
0 comments