DE Ltd. recently transitioned from physical document storage to a Cloud-Based Document Management System (DMS) to streamline record-keeping and improve its compliance system. While the new system provided secure access,

Document management refers to the process of managing and tracking of the documents and records through an electronic or physical source of documents. In an electronic repository, Document Management Systems (DMS) works by using a computer system and software to store, manage and track electronic documents and electronic images of paper-based information captured through the use of a scanner. The term document management system can be defined as the software that controls and organizes documents of an organization. It incorporates document and content capture, workflow, document repositories and output systems, and information retrieval systems. Also, the processes used to track, store and control documents. Nowadays many business houses are adopting maintenance of records efficiently through document scanning, cloud document management and secure archive storage services. In Cloud Document Management - Digitized records can be uploaded, together with relevant data to secure cloud document management solution. This allows maintenance records to be accessed from any location using a web browser. The system provides a full electronic audit trail and restricts access to records by user, group or role, providing improved compliance. Documents can be tagged by any required data, which allows information to be found quickly and easily using a keyword search functionality. Benefits/Advantages of DMS: Tracking on check-in/check-out by various officers Locking and unlocking of documents Simultaneous editing Document version control Roll back options/retrieve options Ease in audit trail Annotations and stamps Section 120 of the Companies Act, 2013 (the Act) read with Rule 27 & 28 of the Companies (Management and Administration) Rule, 2014, provides for maintenance of documents in electronic form. The provisions also provide for inspection of documents maintained in electronic form. It states that any document, record, register, minutes, etc. that are required to be kept by a company or allowed to be inspected or copies to be given to any person by a company under the Act, may be kept or inspected or copies given, as the case may be, in electronic form. Rule 27 provides that every listed company or a company having not less than one thousand shareholders, debenture holders and other security holders, may maintain its records in electronic form. In view of above the contention of the Company Secretary is valid.