Power to close register of members or debenture holders or other security holders
📚 Law Minded summary
A company can close its register of members or security holders for a period, typically so it can fix who is entitled to a dividend or to vote.
It must give at least seven days' notice, and cannot close the register for more than thirty days at a time or forty-five days in a year.
holders or other security holders. —
(1) A company may close the register of members or the register of debenture -holders or the register of other security holders for any period or periods not exceeding in the aggregate forty -five days in each year, but not exceeding thirty days at any one time, subject to giving of previous notice of at least seven days or such lesser period as may be specified by Securities and Exchange Board for listed companies or the companies which intend to get their securities listed, in such manner as may be prescribed.
(2) If the register of members or of debenture -holders or of other security holders is closed without giving the notice as provided in sub-section (1), or after giving shorter notice than that so provided, or for a continuous or an aggregate period in excess of the limits specified in that sub -section, the company and every officer of the company who is in default shall be liable to a penalty of five thousand rupees for every day subject to a maximum of one lakh rupees during which the register is kept closed.