BCD Ltd. has paid up share capital of 40,00,000 equity shares of ₹10 each. Kalyan holding 40,000 equity shares has given notice to the company for inspection of the books of accounts of the company. Advise the company.

The provisions of inspection of books of accounts and other books and papers maintained by the company are contained in Section 128(3) and 128(4) of the Companies Act, 2013 as under: (i) As per Section 128(3) of the Companies Act, 2013 the books of account and other books and papers maintained by the company within India shall be open for inspection at the registered office of the company or at such other place in India by any director during business hours, and in the case of financial information, if any, maintained outside the country, copies of such financial information shall be maintained and produced for inspection by any director subject to such conditions as may be prescribed: Provided that the inspection in respect of any subsidiary of the company shall be done only by the person authorised in this behalf by a resolution of the Board of Directors. (ii) As per Section 128(4) of the Companies Act, 2013, where an inspection is made under Sub- section (3), the officers and other employees of the company shall give to the person making such inspection all assistance in connection with the inspection which the company may reasonably be expected to give. As per the above mentioned provisions, only the Director of the company can inspect the books of accounts and other books and papers maintained by the company. A shareholder irrespective of the shares held by him, has no right to inspect the books of accounts and other books and papers maintained by the company. The application of Mr. Kalyan is not in accordance with the provisions of the Act and therefore the application has to be declined by the company.