14 May 2009
Section 154 of the Companies Act,1956 states about book closure of a company. I understand that the main purpose for closing the books is to determine exactly, its members on a particular date for the purpose of dividend declaration,bonus issue, rights issue etc. But clause 16 of the Listing agreement states that the Company agrees to close its Transfer Books at least once a year at the time of the Annual General Meeting if they have not been otherwise closed at any time during the year which means does a Company have to close even when dividend is not declared, or no rights issue or bonus issue. If so what could be the purpose?
CAclubindia
