SECTION 220

FILING OF ANNUAL ACCOUNTS

Whether Registrar can take balance sheet and profit and loss account on record if not laid before annual general meeting.

It has come to the notice of this Department that a company has sent to the Registrar of Companies, for filing under section 220, its balance sheet and profit and loss account which had been laid before a general meeting and not an annual general meeting. In this context the question arose for consideration as to whether the Registrar could take the document on record in view of the clear provisions of sub-section(1) of section 210 read with sub-section (1) of section 220 requiring the balance sheet and profit and loss account to be laid before a company at an annual general meeting before sending it to the Registrar for filing. The Department has been advised that the balance sheet and profit and loss account are required to be placed only at an annual general meeting and not at any other general meeting. In case the annual accounts arte not ready for laying at the appropriate annual general meeting, it is open for the company concerned to adjourn the said annual general meeting to a subsequent date when the annual accounts are expected to be ready for laying. This may be done by adopting a suitable resolution adjourning the said annual general meeting to a specified date or to a date to be specified later on.

In future balance sheets and profit and loss accounts which are not laid before an annual general meeting of the company but submitted to the Registrar of Companies for filing under section 220 would not be taken on record. The question of launching prosecution in such cases would be considered.

* CIRCULAR NO.4/74, DATED 2.2.1974.