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Section 175A Dispensing of AGM - Benefits?

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Section 175A Dispensing of AGM - Benefits?

Post by Shadowhawk » Tue, 04 Feb 2014 4:23 pm

I've just become aware that a Pte. Ltd. can dispense with holding an AGM by passing a resolution under Section 175A of the Companies Act. At first, I thought that would be great for reducing the amount we pay to the auditor/accounting company. On thinking further, what we pay our accounting company for is preparation/submission of the Annual Return, an annual report, and filing taxes, and I'm guessing that doing away with the AGM doesn't mean doing away with these things. So, in the end, the only benefit is that you don't have to hold/record that an AGM was held.

Am I on the right track, or can you actually save some overhead by doing away with the AGM?

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Strong Eagle
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Post by Strong Eagle » Wed, 05 Feb 2014 12:02 am

You won't really save any money. After all, if you are privately held with just a handful of shareholders, AGM's and EGM's are all only on paper anyway. The paperwork to call and hold an AGM/EGM is boilerplate and dirt simple. Without the AGM/EGM, you still need the appropriate directors resolutions for various actions such as opening a bank account.

As I recall, most everything can be done without an AGM/EGM. The annual report needs to be made for the AGM, but again, this is a simple piece of paper that it was given and accepted by the shareholders... boilerplate stuff.

And you are correct... you still need your annual report, annual tax return, etc. That's where the money is.

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