Why agm adjourns if accounts not adopted

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Vaibhav Shah (Querist)
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19 September 2013 Suppose my agm was held on 28 th sept. N due date is 30th sept. But the meeting is adjourned....without adoption of accounts.. Y is d meetin adjourned?

Ajay Mishra

Ajay Mishra (Expert)
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19 September 2013 Hi

If the annual general meeting of a company before which a balance sheet is laid as aforesaid does not adopt the balance sheet, or is adjourned without adopting the balance sheet or, if the annual general meeting of a company for any year has not been held, a statement of that fact and of the reasons therefore shall be annexed to the balance sheet and profit and loss account required to be filed with the Registrar electronically in e-Form 23AC and 3-Form 23ACA— Section 220(2).

It has been clarified by the Department that the balance sheets and profit and loss accounts which are not laid before an Annual General Meeting of the company but submitted to Registrar of Companies, for filing under section 220 of the Act would not be taken on record. The question of launching prosecution in such cases would be considered. [Vide Circular No. 4/74, dated 22-2-1974]