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Board Meetings for approval and signing of accounts


If the AGM of a private limited company is slated to be held on 23.4.2010, when should the board meeting for approval of accounts, authorising directors for signing of accounts, adopting of directors' report and adoption of auditors report be held? Do we need separate board meetings for approval of accounts, for adoption of directors' report and for adoption of auditors' report? Urgent please

 
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In my opinion 21 clear days means 21 days + 2 days if the notice is send by post and the date on AGM and the date of sending of notice is excluded.Thus 21 clear days means 21+2 it means if the AGM is to be held on 1st April the notice is required to be send upto 2nd april. 21 clear days must be taken as 23 days before the meeting.

But here i surprised hw accounts can be ready by 2nd april.?

 
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Company Secretary and Compliance Officer

As per my suggestion you may hold your BM for adoption of Annual Accounts and approval of AGM notice ---on March 27, 2010 keeping in view the provisions of section 53 and section 171 of the companies act, 1956.

 

Best Regards

 
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Thank you sir for your reply. I undrstand that there should be 23 days gap between the BM and AGM. But can we transact all the above mentioned business in one Board Meeting i.e approval of accounts, approval of directors report and approval of auditors report?

 
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CMD of SHAYVIDZ Group


Originally posted by : Ankur Garg

As per my suggestion you may hold your BM for adoption of Annual Accounts and approval of AGM notice ---on March 27, 2010 keeping in view the provisions of section 53 and section 171 of the companies act, 1956.

Best Regards

If company's accounting year is from 1st April 2009 to 31st March 2010, then how the Annual Accounts can be adopted on March 27, 2010? The accounting year will be closed on 31st march 2010.

  

So, approval of accounts, approval of directors report and approval of auditors report are not possible in BM held on 27th March, 2010 if the accounting year 1st April 2009 to 31st March 2010.

  

 
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CMD of SHAYVIDZ Group


Originally posted by : CA RAJESH BALSARA

In my opinion 21 clear days means 21 days + 2 days if the notice is send by post and the date on AGM and the date of sending of notice is excluded.Thus 21 clear days means 21+2 it means if the AGM is to be held on 1st April the notice is required to be send upto 2nd april. 21 clear days must be taken as 23 days before the meeting.

But here i surprised hw accounts can be ready by 2nd april.?

Sir... !

  

I fully agree wid u regarding time gap of Notice for AGM.

  

& about preparation & audit of accounts of a Private limited Company may be possible if its business is in very small scale or having very a few number of transactions or it may be 1st year of the company.

  

 
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Company Secretary and Compliance Officer

 

Originally posted by : Suvarna Pathare

Thank you sir for your reply. I undrstand that there should be 23 days gap between the BM and AGM. But can we transact all the above mentioned business in one Board Meeting i.e approval of accounts, approval of directors report and approval of auditors report?

According to me there should be a gap of 25 days as per section 171 read with section 53(2)(b)(i). A gap of 25 days includes 21 days + 1 day of dispatch + 1 day of meeting + 2 days [48 hours in transit as desired by section 53(2)(b)(i)].

Yes you can transact the following businesses in this BM. In short the agenda of this BM may be as follows:

1. Approval of Annual Accounts

2. Approval of Directors’ Report

3. Approval of Auditors’ Report

4. Approval of notice of AGM

5. Authorisation for filing statutory forms (Not necessary).

Revert if there is any doubt.

Regards

 
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CMD of SHAYVIDZ Group


Reply of Warrier Sir on this matter :

 


B.Chackrapani Warrier

( Expert )
16 April 2010



The company has to convene a board meeting to approve the accounts and to pass on the accounts to the auditor's for auditing. The auditors will audit the accounts(it may take days depending on the volume of business of the company)and sign the statements on a date subsequent to the board meeting. The company may convene another board meeting to approve/sign the Director's report and to fix the date of AGM. So two board meetings are required for the issue raised.

 
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CMD of SHAYVIDZ Group


Ankur Ji,

  

U have metioned the date of BM March 27, 2010

Is it possible to prepare final account as on the 31st march 2010 on the date that u have mentioned?

 
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Company Secretary and Compliance Officer

Two Board Meetings are not required mandatorily. However there may be different routes and methods to perform the desired task depending upon the professional understanding of the person concerned.

Regards

 

 

 
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