# Maintenance and Inspection of Documents in Electronic Form [Section 120]

## Who Can / Must Maintain Records Electronically

A listed company OR
A company having ≥ 1,000 security holders

MAY maintain its records in electronic form. (Note: the section uses 'may', so this is enabling, not strictly compulsory.)

## What Can Be Kept Electronically

Any document, record, register, minute, etc. — they may be:

Kept in electronic form,
Inspected in electronic form,
Copies given in electronic form.

## Who is Responsible

The Managing Director (MD), Company Secretary (CS), or any other director/officer as the Board decides shall be responsible for the maintenance and security of electronic records.

## Inspection of Electronic Records

Records maintained in electronic form must be made available for inspection in electronic form.
Copies of electronic records: charge ≤ ₹ 10 per page.

## Key Memory Hook

"Listed OR 1,000+ security holders → electronic record keeping permitted. MD/CS/Board-designated officer is the custodian. ₹10/page maximum for copies."

Worked example

### Example 1

Example: An unlisted public company has 950 equity shareholders and 100 debenture holders. Can it maintain its records electronically under Sec. 120?

Answer: Yes. The threshold is 1,000 security holders (which includes equity + preference + debenture holders). 950 + 100 = 1,050 ≥ 1,000 → the company may maintain electronic records.

⚠️ Common exam mistakes

Reading '1,000 members' instead of '1,000 security holders' — debenture holders also count.
Forgetting that the option is permissive ('may'), not mandatory.
Charging more than ₹ 10 per page for electronic copies.

Reference: Section 120 — Companies Act, 2013

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