05 January 2010
Can the audited annual accounts, once adopted in AGM be amended & re adopted in an Extra ordinary General Meetings. Is their any specific provisions for the same.
05 January 2010
CIRCULAR NO.12/77[1/1/77-CL-V AND 2/331/75-CL II], DATED 21.11.1977.
Whether accounts once adopted and passed in annual general meeting can be revised in a subsequent meeting
Query : Whether annual accounts once adopted and passed in an annual general meeting can be revised in a subsequent meeting?
Answer : The matter relating to revision of accounts already adopted and any amendment in the articles of association containing any provisions to the contrary has since been re-examined in this Department in consultation with Department of Legal Affairs. The view that has emerged is that the accounts once adopted and passed in an annual general meeting become final and cannot be reopened in subsequent meeting. The special resolution passed empowering the company to amend its accounts also become invalid under the provisions of section 9(b).
Note: The view has since been revised as per the deliberations of the Conference of Regional Directors, Registrars of Companies and Joint Directors held on 25th/26th June, 1986. the revised view is that revision of annual accounts for meeting technical requirements of taxation laws is not prohibited under the Companies Act and as such it may be taken as permitted.
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