Q.Explain statutory meeting and report of company.
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Start your 14-day free trial to unlock the full solution →A statutory meeting is the once-in-a-lifetime first general meeting of a public company's members held soon after formation; the statutory report placed before it discloses the company's early financial and organisational position.
Statutory meeting: It is the first general meeting of the members of a public company limited by shares, held only once during the life of the company, within the period prescribed after the company becomes entitled to commence business. Its purpose is to acquaint the members, at an early stage, with the formation, capital position and prospects of the company and to give them an opportunity to discuss matters relating to its promotion and floatation.
Statutory report: Before the statutory meeting, the directors prepare and send to every member a statutory report, which is also placed before the meeting. It generally contains:
- Total number of shares allotted (distinguishing fully/partly paid, and those issued for cash or otherwise).
- Total cash received on shares allotted.
- An abstract of receipts and payments (preliminary expenses, etc.).
- Names, addresses and occupations of directors, auditors, secretary, etc.
- Particulars of contracts to be submitted for approval and any modifications.
- Details of any underwriting commission or brokerage and any arrears of calls from directors. …
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