A private limited company in the process of dissolution stops maintaining statutory registers. Company argues that since they are in the process of dissolution, there is no need to maintain statutory registers. What is t

The argument of the Company that owing to their dissolution process, they need not to maintain statutory registers, does not seem to hold any validity. By virtue of various provisions of the Companies Act, 2013, every company governed under Companies Act, 2013 is required to maintain statutory registers at its registered office until the dissolution of the Company. Further, the company must understand the consequences of non-maintenance of the Registers, as different penal consequences are prescribed for not maintaining statutory registers prescribed under various sections of the Companies Act, 2013. For example, if any company fails to maintain the Register of Charges (a statutory register) it could result in a fine of not less than ₹1 lakh, which may extend to ₹10 lakh. Further, the officers of the company may also be punishable with imprisonment for a term which may extend to six months or with a fine not less than ₹25000 which may extend to ₹1 lakh or with both. Hence, it is important for all the companies including private limited company or limited company or one person company incorporated in India to maintain statutory registers.