16 July 2010
Our Co. is incorporated on 19-12-08. We would like to close our accounts for the first time on 31-03-10 (i.e.,) in 15 months and 13 days. Are we correct in doing so? Are we complying with Sec. 210 and Sec. 166 of the Cos. Act?
The period to which the account aforesaid relates is referred to in this Act as a "financial year" and it may be less or more than a calendar year, but it shall not exceed fifteen months :
Provided that it may extend to eighteen months where special permission has been granted in that behalf by the Registrar.
16 July 2010
Again referring Section 210 (3) which may be applicable to your Company
(3) The profit and loss account shall relate-
(a) in the case of the first annual general meeting of the company, to the period beginning with the incorporation of the company and ending with a day which shall not precede the day of the meeting by more than nine months
So you may escape Section 210(4) by obtaining sPECIAL PERMISSION FROM REGISTRAR BUT you will violate Section 210 (3)here.
16 July 2010
Contradiction between the provision of section 166 and 210 --------------------------------------- Section 166 allows holding of an annual general meeting within fifteen months of the last annual general meeting of the company. While this does not need approval of the Registrar of Companies (ROC), this may at times result in a company not being able to hold the annual general meeting within six months from the end of the financial year as envisaged in section 210(3)(b).
Harmonization between section 166 and section 210 ---------------------------------------- At times, there is a possibility of non-compliance emerging on this subject – while compliance would be in order for section 166 for holding the annual general meeting within nine months (taking into consideration of three month’s extended period of time by ROC) , there could not non-compliance under section 210 – for not holding the annual general meeting within six months from the end of the financial year - due to different timing specified in both these sections for holding annual general meeting.
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