Tuesday, September 13, 2016

CAN A COMPANY CIRCULATE UNAUDITED FINANCIAL STATEMENT TO IT'S SHREHOLDERS


Generally we know that a company issued or circulate or published financial statement to its shareholders before every annual general meeting. But we should know that whether a company can issue unaudited financial statement?

According to various provision of companies act 2013 a company can not issued unaudited financial statement to its shareholder before its AGM.

According to section 129(2) of the company act 2013 the board of director of every company shall lay before AGM the financial statement for the financial year.

According to sec. 134(7) of the company act 2013 the board of director shall issued, circulate or published financial statement along with the copy of the following documents to all its shareholder

1.       Any notes annexed to or forming part of such financial statement.
2.       Auditor’s report.
3.       Board’s report.


Therefore, from the above provision it is clear that a company can not issue unaudited financial statement to its shareholders before it’s AGM.

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