Section 258 of the Companies Act, 2013
Section 258 of the Companies Act, 2013 pertains to the Procedure for Sale of Books of Account of Company.
📜 Section 258 – Sale of Books of Account of Company
✅ Key Provisions:
When Applicable:
When a company closes or ceases its business, it may dispose of or sell its books of account and related papers.
Approval Required:
The company must obtain prior approval of the Registrar of Companies (ROC) before selling or disposing of such books and papers.
Preservation of Books:
The company must ensure that the books of account and papers are preserved for the prescribed period before disposal.
Generally, companies are required to keep their books for 8 years (as per Section 128).
Notice to Registrar:
The company should give notice to the ROC of its intention to sell or dispose of the books.
The ROC may impose conditions or require the company to deposit the books in any public office before the sale.
🧾 Importance:
Protects the interests of creditors, shareholders, and other stakeholders by ensuring proper record keeping.
Prevents unauthorized destruction or disposal of important company documents.
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