Report date

[Michelle Lai]

Is there anyone aware that if a company passed dispense held of AGM the report date must be dated 28 days before the AGM due date according to companies act section 203(1)

Please advise what does means ?

[Strong Eagle]

I have no idea what you just said. Want to try again?

[Mi Amigo]

Yeah, that's what I was thinking. It's English, Jim, but not as we know it...

Michelle, can you explain what the circumstances are and then what your question is?

[Strong Eagle]

It's English, Jim, but not as we know it...

Dammit, Jim! I'm a doctor, not a miracle worker.

[Mi Amigo]

Scotty, I need answers NOW!

.. But Captain, the Dilithium Crystal Ball is failing...

[Michelle Lai]

Dear all,

Please refer to the following Act :

Members of company entitled to balance-sheet, etc.
203.—(1) A copy of every profit and loss account and balance-sheet of a company or, in the case of a holding company, a copy of the consolidated accounts and balance-sheet (including every document required by law to be attached thereto), which is duly audited and which (or which, but for section 201C) is to be laid before the company in general meeting accompanied by a copy of the auditor’s report thereon shall —
(a)not less than 14 days before the date of the meeting; or
(b)if a resolution under section 175A is in force, not less than 28 days before the end of the period allowed for the laying of those documents,
be sent to all persons entitled to receive notice of general meetings of the company.

[sundaymorningstaple]

sounds pretty straightforward to me.

[Mi Amigo]

Yeah, me too. Michelle, what is your question again??

[Mi Amigo]

If your question is still "What does this mean?", how about if we change the wording round a bit:

A copy of ... [blah blah blah] ... accompanied by a copy of the auditor’s report thereon shall be sent to all persons entitled to receive notice of general meetings of the company—

(a)not less than 14 days before the date of the meeting; or

(b)if a resolution under section 175A is in force, not less than 28 days before the end of the period allowed for the laying of those documents

Does it make more sense that way round? To be fair, the original syntax is a little convoluted I guess.

[Strong Eagle]

Michelle,

The whole point of these statutes is to ensure that shareholders get to look at the financial statements before the AGM so that they have time to review. Less than honorable companies would dump complex financials at the meeting and then expect shareholder approval then an there.

Here is the twist. If you are a public limited, then you must always have a AGM and you must submit financials to the shareholders 14 days before the date of that meeting.

But if you are a private limited, then under section 175A, the shareholders can dispense with having an AGM. Each year, they can pass a resolution, good for one year, saying they won't have an AGM. I don't know very many private limited's that actually do this. Generally, it is sufficient to record that an AGM was held, with all the proper paperwork, so long as none of the shareholders object to handling the AGM in this manner.

As I understand it (and you should confirm with your auditor):

IF you did pass a resolution dispensing with the AGM, then the financials must be supplied to all shareholders 28 days before the expiry of the resolution. In other words, if a resolution were passed on Jan 1 to dispense with an AGM, then you would need to supply financials no later than Dec 3, 28 days before the expiry of the resolution.

[taxico]

i wanna be like michelle lai and ask all my job/work-related questions on an unrelated forum.

[sundaymorningstaple]

Yeah, I've been waiting for the slip up since her first post.

[Strong Eagle]

i wanna be like michelle lai and ask all my job/work-related questions on an unrelated forum.

I may be wrong, and I think she started a pte ltd without the benefit of a CPA.

[sundaymorningstaple]