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Dispatch of Annual Report along with AGM Notice

Krushna (ACS) (119 Points)

24 March 2010

Can anybody help me Which provisions of Companies Act or Company rules make it mandatory to dispatch Annual report along with Notice of AGM 21 days prior to AGM or at shorther notice with the permission of the members.

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Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 24 March 2010

Hello,

Kindly appreciate there is no provisions of Companies Act or Company rules which makes it mandatory for a company to dispatch Annual report along with Notice of AGM. It depends on the policy of the company. You can 100% go for the separate dispatch Annual report and Notice of AGM.

Benefit of simultaneously dispatch of Annual report along with Notice of AGM

Simultaneously dispatch of Annual report along with Notice of AGM is really cost effective. For example if there are 10,000 shareholders than you have pay the double expenses once for dispatch of annual report and secondly for the dispatch of notice of AGM.

Provisions for Dispatch of notice to members are governed by section 53.

Kindly revert if there is any doubt.

Best Regards

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Krushna (ACS) (119 Points)
Replied 24 March 2010

BY DISPATCH I MEANED THAT WHY DO WE HAVE TO POST THOSE ANNUAL REPORT 21DAYS PRIOR THE AGM WHERE IN THE COS. ACT IT HAS BEEN MENTIONED AS TO DISPATCH OF ANNUAL REPORT 21 DAYS PRIOR TO AGM, AS IN SEC 210 IT SAY ABOUT CIRCULATION OF ANNUAL ACCOUNTS AT THE AGM AND DOES'NT SPECIFIES ANY THING ABOUT THE TIME LENGTH FOR POSTING THE ACCOUNTS, ALSO SEC 172 STATES THE CONTENTS OF THE NOTICE OF AGM WHICH TOO DOES'NT STATES THAT ANNUAL ACCOUNTS ARE TO BE SENT ALONG WITHTHE NOTICE IT ONLY STSTE THAT EXPLANATORY STAEMENT FOR SPECIAL BUSINESS ARE TO BE INCLUDED, THUS KINDLY HELP

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 24 March 2010

Appreciate further Annual Report contain the balance-sheet including the profit and loss account, the auditors' report for members. So in this way you have to post those annual report 21 days prior the AGM.

As per section 219(1) a copy of every balance-sheet (including the profit and loss account, the auditors' report and every other document required by law to be annexed or attached, as the case may be, to the balance-sheet) which is to be laid before a company in general meeting shall, not less than twenty-one days before the date of the meeting, be sent to every member of the company, to every trustee for the holders of any debentures issued by the company, whether such member or trustee is or is not entitled to have notices of general meetings of the company sent to him, and to all persons other than such members or trustees, being persons so entitled.

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