INTRODUCTION-
The term “Company” basically means an association of a number of persons for some common object or objects. The purposes for which people may wish to make a company might differ. Buti in Legal terms, the meaning of the company might slightly differ, but not the purpose of the company, so, here a company means a company incorporated or registered under ‘The Companies Act,2013’ or under any of the other Companies legislation. In its legal form, the law creates an artificial entity i.e- a company. It has a separate identity independent of its members. So, this artificial legal person like any other ordinary human beings:
- Has many rights and
- Incurs many liabilities
A company is defined under section 1 of the Companies Act,2013 as a Juristic entity incorporated under the act, and a company is a legal person with separate legal personality under section 19(1)(b) of the companies act.In the landmark case of SALOMON v. SALOMON, the principle of “Separate Legal Personality”(of a company) was established, which allows its stakeholders to escape from personal liability in case of a crisis.
Chapter-IX (Accounts of Companies)Section 136, of The Companies Act,2013: Right of members to copies of audited financial statement, which states-
(1) Without prejudice to the provisions of section 101, a copy of the financial statements, including consolidated financial statements, if any, auditor‘s report and every other document required by law to be annexed or attached to the financial statements, which are to be laid before a company in its general meeting, shall be sent to every member of the company, to every trustee for the debenture-holder of any debentures issued by the company, and to all persons other than such member or trustee, being the person so entitled, not less than twenty-one days before the date of the meeting:
Provided that in the case of a listed company, the provisions of this sub-section shall be deemed to be complied with, if the copies of the documents are made available for inspection at its registered office during working hours for a period of twenty-one days before the date of the meeting and a statement containing the salient features of such documents in the prescribed form or copies of the documents, as the company may deem fit, is sent to every member of the company and to every trustee for the holders of any debentures issued by the company not less than twenty-one days before the date of the meeting unless the shareholders ask for full financial statements:
Provided further that the Central Government may prescribe the manner of circulation of financial statements of companies having such net worth and turnover as may be prescribed:
Provided also that a listed company shall also place its financial statements including consolidated financial statements, if any, and all other documents required to be attached thereto, on its website, which is maintained by or on behalf of the company:
Provided also that every company having a subsidiary or subsidiaries shall,—
- place separate audited accounts in respect of each of its subsidiary on its website, if any;
- provide a copy of separate audited financial statements in respect of each of its subsidiary, to any shareholder of the company who asks for it.
(2) A company shall allow every member or trustee of the holder of any debentures issued by the company to inspect the documents stated under sub-section (1) at its registered office during business hours.
(3) If any default is made in complying with the provisions of this section, the company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of five thousand rupees.
EXPLANATION-
Section 136 of the CA,2013 came into force from 1st April,2014.
As per Section 136(1) of CA,2013, a copy of the financial statements which are to laid before a company in its general meeting shall be sent in not less than 21 days before the date of the meeting to the following:
- Every member of the company.
- EVery Trustee for the debenture- holder of any debentures issued by the company; and
- All persons other than such member or trustee, being the person so entitled.
However,Section 136(1) also states these requirements shall be deemed to be compiled with in case of a listed company,if:
- Available for Inspection-
The copies of the documents are made available for inspection at its Registered Office during working hours for a period of 21 days before the date of the meeting.
- Statements to be sent with salient Features-
A statement containing the salient feature of documents or copies of the documents, as the company may deem fit, is sent to every member of the company and to every trustee for the holders of any debentures issued by the company not less than 21 days before the date of the meeting, unless and until the shareholders ask for full financial statement.
According to Section 136(2), a company shall also allow every member or trustee of the holder of any debentures issued by the company to inspect the documents stated under section 136(1) at its registered office during business hours.
As per the Section 136(1), the Central Government may prescribe the manner of circulation of Financial Statements of companies having such net worth and turnover as may be prescribed.
Manner of Circulation of Financial Statements in certain cases-
- In the matter of all listed companies and public companies which have a net worth of more than 1 Crore and turnover of more than 10 Crore, the financial statements may be sent by:
- Electronic Mode (only whose shareholding is in dematerialised format and whose email Ids registered with Depository for communication purposes)
- Physical Copy (In all the other cases)
2. Also, every company having a subsidiary or subsidiaries shall,
a. Place separate audited accounts
b. Provide a copy of separate audited financial statements.
REFERENCES-
https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwisyd-chOv6AhUJSmwGHdhmC7U4ChAWegQIIxAB&url=https%3A%2F%2Fwww.caclubindia.com%2Farticles%2Fnotice-to-shareholders-u-s-101-read-with-136-of-ca-2013-21749.asp&usg=AOvVaw0aXWlQuGgRxfCTSfiwbFqQ
INTRODUCTION-
The term “Company” basically means an association of a number of persons for some common object or objects. The purposes for which people may wish to make a company might differ. Buti in Legal terms, the meaning of the company might slightly differ, but not the purpose of the company, so, here a company means a company incorporated or registered under ‘The Companies Act,2013’ or under any of the other Companies legislation. In its legal form, the law creates an artificial entity i.e- a company. It has a separate identity independent of its members. So, this artificial legal person like any other ordinary human beings:
- Has many rights and
- Incurs many liabilities
A company is defined under section 1 of the Companies Act,2013 as a Juristic entity incorporated under the act, and a company is a legal person with separate legal personality under section 19(1)(b) of the companies act.In the landmark case of SALOMON v. SALOMON, the principle of “Separate Legal Personality”(of a company) was established, which allows its stakeholders to escape from personal liability in case of a crisis.
Chapter-IX (Accounts of Companies)Section 136, of The Companies Act,2013: Right of members to copies of audited financial statement, which states-
(1) Without prejudice to the provisions of section 101, a copy of the financial statements, including consolidated financial statements, if any, auditor‘s report and every other document required by law to be annexed or attached to the financial statements, which are to be laid before a company in its general meeting, shall be sent to every member of the company, to every trustee for the debenture-holder of any debentures issued by the company, and to all persons other than such member or trustee, being the person so entitled, not less than twenty-one days before the date of the meeting:
Provided that in the case of a listed company, the provisions of this sub-section shall be deemed to be complied with, if the copies of the documents are made available for inspection at its registered office during working hours for a period of twenty-one days before the date of the meeting and a statement containing the salient features of such documents in the prescribed form or copies of the documents, as the company may deem fit, is sent to every member of the company and to every trustee for the holders of any debentures issued by the company not less than twenty-one days before the date of the meeting unless the shareholders ask for full financial statements:
Provided further that the Central Government may prescribe the manner of circulation of financial statements of companies having such net worth and turnover as may be prescribed:
Provided also that a listed company shall also place its financial statements including consolidated financial statements, if any, and all other documents required to be attached thereto, on its website, which is maintained by or on behalf of the company:
Provided also that every company having a subsidiary or subsidiaries shall,—
- place separate audited accounts in respect of each of its subsidiary on its website, if any;
- provide a copy of separate audited financial statements in respect of each of its subsidiary, to any shareholder of the company who asks for it.
(2) A company shall allow every member or trustee of the holder of any debentures issued by the company to inspect the documents stated under sub-section (1) at its registered office during business hours.
(3) If any default is made in complying with the provisions of this section, the company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of five thousand rupees.
EXPLANATION-
Section 136 of the CA,2013 came into force from 1st April,2014.
As per Section 136(1) of CA,2013, a copy of the financial statements which are to laid before a company in its general meeting shall be sent in not less than 21 days before the date of the meeting to the following:
- Every member of the company.
- EVery Trustee for the debenture- holder of any debentures issued by the company; and
- All persons other than such member or trustee, being the person so entitled.
However,Section 136(1) also states these requirements shall be deemed to be compiled with in case of a listed company,if:
- Available for Inspection-
The copies of the documents are made available for inspection at its Registered Office during working hours for a period of 21 days before the date of the meeting.
- Statements to be sent with salient Features-
A statement containing the salient feature of documents or copies of the documents, as the company may deem fit, is sent to every member of the company and to every trustee for the holders of any debentures issued by the company not less than 21 days before the date of the meeting, unless and until the shareholders ask for full financial statement.
According to Section 136(2), a company shall also allow every member or trustee of the holder of any debentures issued by the company to inspect the documents stated under section 136(1) at its registered office during business hours.
As per the Section 136(1), the Central Government may prescribe the manner of circulation of Financial Statements of companies having such net worth and turnover as may be prescribed.
Manner of Circulation of Financial Statements in certain cases-
- In the matter of all listed companies and public companies which have a net worth of more than 1 Crore and turnover of more than 10 Crore, the financial statements may be sent by:
- Electronic Mode (only whose shareholding is in dematerialised format and whose email Ids registered with Depository for communication purposes)
- Physical Copy (In all the other cases)
2. Also, every company having a subsidiary or subsidiaries shall,
a. Place separate audited accounts
b. Provide a copy of separate audited financial statements.
REFERENCES-
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