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Register of Members, Debenture-holders and Other Security Holders

# Register of Members, Debenture-holders and Other Security Holders

## Overview

Every company must maintain statutory registers to record details of those who hold securities issued by the company. These registers form the official, legal record of ownership.

## Registers Required [Section 88]

RegisterFormFor Whom
Register of MembersMGT-1Equity & Preference shareholders (kept separately)
Register of Debenture-holdersMGT-2Debenture-holders
Register of Other Security HoldersMGT-2Holders of other securities

## Place of Keeping Register [Section 94]

The register can be kept at:

  • Registered office of company (default), or
  • Other place by passing Special Resolution, provided such place is:
  • Within the same city/town/village as the registered office, or
  • Any place in India where more than 1/10th of total members reside.

## Time of Making Entry

  • Entry in register: within 7 days of approval by BOD/Committee (for allotment, transfer/transmission, duplicate certificate, buyback, etc.).
  • Listed companies (in or outside India): details of pledge, charge, lien or hypothecation created by promoters must be entered within 15 days of such event.

## Index of Register

  • An index of names must accompany the register.
  • Not required if members ≤ 50.
  • Entry in index must be made simultaneously with the register entry.

## Authentication

Entries in registers (including foreign register) and index must be authenticated by:

  • Company Secretary, or
  • Any person authorised by BOD.

## Inspection, Extracts and Copies [Section 94]

  • Open for inspection during business hours, for a period not less than 2 hours every working day (as decided by BOD).
  • Free inspection: Member, debenture-holder, other security-holder, beneficial owner.
  • Paid inspection: Any other person on payment of fees specified in AOA (maximum ₹50 per inspection).
  • Extracts: Free of cost.
  • Copies: Fees ≤ ₹10 per page; supplied within 7 days of fee deposit.

Restrictions on disclosure: Address, email ID or PAN/UIN of a member shall NOT be made available for inspection.

If inspection/extract/copy is refused:

  • CG (delegated to RD) may direct immediate compliance.
  • Penalty: Company & officer in default — ₹1,000 per day per default (max ₹1 lakh).

## Other Provisions

Register shall include:

  • Names of all joint holders – they may request entry order but cannot insist on only one name appearing.
  • If member is a minor – name entered only if guardian details are available; guardian's name also entered.
  • Reference to any order by SEBI or other authority (attaching security, remittance of dividend/interest or rectification).

## Penalty for Default [Section 88]

DefaulterPenalty
Company₹3 lakhs
Officer in default₹50,000

Worked example

### Example 1

Example 1: ABC Ltd's registered office is in Pune. It wants to maintain the Register of Members at Mumbai (another city). Is this permitted?

Answer: No. Under Section 94, the register can be kept outside the registered office only if it is within the same city/town/village, OR at any place in India where more than 1/10th of total members reside. Mumbai qualifies only if >1/10th members reside there AND a Special Resolution is passed.

### Example 2

Example 2: XYZ Ltd allots fresh equity shares on 1st June via BOD resolution. By what date must the entry in Register of Members be made?

Answer: Within 7 days of BOD approval, i.e., by 8th June.

### Example 3

Example 3: A research scholar requests inspection of Register of Members of PQR Ltd. The company refuses citing privacy of members. Comment.

Answer: The company cannot refuse — any person may inspect on payment of fees (≤ ₹50). However, address, email ID and PAN of members shall NOT be made available. Refusal attracts penalty of ₹1,000/day (max ₹1 lakh).

⚠️ Common exam mistakes

  • Confusing the form numbers: MGT-1 is for Members; MGT-2 is for debenture/other security holders.
  • Forgetting that index is NOT required when number of members is ≤ 50.
  • Mixing up inspection limits — ₹50 per inspection vs ₹10 per page for copies.
  • Overlooking that the 15-day window for entries of pledge/charge by promoters applies only to LISTED companies.
  • Not realising that PAN/email/address of members are exempt from disclosure even when register is open for inspection.
Bare-Act text Section 88 & 94 · Companies Act, 2013 · click to expand
Every company shall keep and maintain registers of (a) members; (b) debenture-holders; (c) any other security holders. Entries shall be authenticated and registers maintained as prescribed.
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