Change of financials
This query is : Resolved
16 May 2013
Can the financials be changed after the adoption of financials in a board meeting?
Revert ASAP
Revert ASAP
16 May 2013
If the pre amended financials are not audited, then the company can change it. Then the changed fiancials has to be again approved by the Board of directors. After this pass on the changed financials for auditing.
17 May 2013
The pre amended financials were audited. Due to some reason, they couldn't be adopted in the AGM and so the AGM was adjourned. Now, is it necessary to again get them approved in a board meeting or can they be presented in the AGM directly?
19 July 2024
In the scenario you've described, where the AGM (Annual General Meeting) was adjourned without adopting the financial statements that were previously audited and presented in a board meeting, here’s what typically happens:
### Key Points to Consider:
1. **Audited Financials:**
- The financial statements were audited based on the information available at that time and were presented in the board meeting.
2. **AGM Adjournment:**
- The AGM was adjourned without adopting the financial statements due to certain reasons.
3. **Next Steps:**
- When an AGM is adjourned, the usual practice is to reconvene the AGM and present the same financial statements for adoption by the shareholders.
4. **Approval Process:**
- Since the financial statements were already audited and presented in a board meeting, they generally do not need to be approved again in another board meeting before being presented in the AGM.
- The board meeting primarily approves the financial statements for submission to the AGM. Once audited, they are considered as proposed for adoption in the AGM.
5. **Legal Requirements:**
- Check the specific legal requirements in your jurisdiction or any specific provisions in your company’s Articles of Association regarding the procedure for adjourned AGMs.
### Practical Steps:
- **Reconvene AGM:** Schedule and reconvene the adjourned AGM where the previously audited financial statements can be presented for adoption by the shareholders.
- **Documentation:** Ensure all documentation related to the audited financial statements, board resolutions, and minutes of meetings are in order and available for reference during the reconvened AGM.
- **Communication:** Notify shareholders and stakeholders about the reconvened AGM and provide them with copies of the audited financial statements well in advance as per statutory requirements.
### Conclusion:
In summary, you typically do not need to convene another board meeting solely to re-approve the financial statements if they were already approved and presented in a board meeting before being audited. The next step would be to present these audited financial statements at the reconvened AGM for adoption by the shareholders. Ensure compliance with legal requirements and follow established corporate governance practices during this process.
### Key Points to Consider:
1. **Audited Financials:**
- The financial statements were audited based on the information available at that time and were presented in the board meeting.
2. **AGM Adjournment:**
- The AGM was adjourned without adopting the financial statements due to certain reasons.
3. **Next Steps:**
- When an AGM is adjourned, the usual practice is to reconvene the AGM and present the same financial statements for adoption by the shareholders.
4. **Approval Process:**
- Since the financial statements were already audited and presented in a board meeting, they generally do not need to be approved again in another board meeting before being presented in the AGM.
- The board meeting primarily approves the financial statements for submission to the AGM. Once audited, they are considered as proposed for adoption in the AGM.
5. **Legal Requirements:**
- Check the specific legal requirements in your jurisdiction or any specific provisions in your company’s Articles of Association regarding the procedure for adjourned AGMs.
### Practical Steps:
- **Reconvene AGM:** Schedule and reconvene the adjourned AGM where the previously audited financial statements can be presented for adoption by the shareholders.
- **Documentation:** Ensure all documentation related to the audited financial statements, board resolutions, and minutes of meetings are in order and available for reference during the reconvened AGM.
- **Communication:** Notify shareholders and stakeholders about the reconvened AGM and provide them with copies of the audited financial statements well in advance as per statutory requirements.
### Conclusion:
In summary, you typically do not need to convene another board meeting solely to re-approve the financial statements if they were already approved and presented in a board meeting before being audited. The next step would be to present these audited financial statements at the reconvened AGM for adoption by the shareholders. Ensure compliance with legal requirements and follow established corporate governance practices during this process.
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