Annual General Meeting

A member wants to inspect the Register of Directors’ shareholdings on a day other than the date on which the Annual General Meeting of the Company is held.
(i) A depoitor is also entitled to be furnished free of cost with a copy of the last balance sheet of the company and of every document required by law to be annexed or attached thereto including the profit and loss account and the auditor’s report even though he is not a member of the company. Accordingly, the company has to furnish the balance sheet within 7 days after the demand is received [Section 219 (2) and (4)].
(ii)The Register of Director’s shareholdings must be kept at the registered office
of the company and it shall be open to inspection of any member during business hours
subject to such reasonable restrictions as the company may, by its Articles or in a general meeting, impose so that not less than two hours in each day are allowed for inspection. But, it sl\all b: a.vailable for inspection only during the peri?d be.B.in’p 14 days before the date of the company’s annual general Irieeting Tha enaing 3 days aftef”the date of its conclusion. In computing 14 days aI’\d 3 days, any day which is a Saturday, a Sunday or a public holiday shall be disregarded. lithe member wants to
. inspect the register beyond this period, it is not necessary for the company to make
available the register for inspection [Section 307 (5)].
1. Is it in order for an auditor appointed at an annual general meeting to continue to function as Auditor when the next annual general meeting has not been held in time? Can he continue as Auditor in case a new Auditor has been appointed in his place at the annual general meeting which was adjourned to a later date?
[November, 1995]
2. How will you deal with the appointment of Auditors in the following cases?
(i) Te first Auditor has not been appointed by the Board of Directors within
one month of incorporation of the company.
(ii) One of the two J oint Auditors appointed in the last Annual General Meeting
resigned.
(iii) One of the partners of a firm of Chartered Accountants appointed as
Auditor died.
(iv) The aggregate shareholding of nationalised Banks, LIC and !DBI exceeded
55% of the paid-up share capital of the company. [November, 1994]
3. What are the books of account to be maintained by a company? Where are the
books to be kept? Who are eligible to inspect the books of account?
[May, 1994]
4. When is a company required to appoint Cost Auditor? What are his duties and
powers? What action can be taken by the Central Government on receipt of Cost
Auditor’s report? [May, 1994]
5. “Though an Auditor is appointed normally by passing an ordinary resolution, yet there are certain circumstances when appointment can be made only by passing a special resolution.” Discuss the statement and state the circumstances when passing of a special resolution for the appointment of an Auditor is a must.
When must a retiring Auditor be re-appointed
6. Under what circumstances can the Central Government order Special Audit of accounts of a company? What action can the Central Government take on receipt
of such report? [May, 19921
7. When is an Auditor required to be appointed by a Special Resolution? What are the consequences if the provisions of the Companies Act, 1956 are not complied
company for any year has not been held, a statement of that fact and the reasons
therefor shall be annexed to the balance sheet and to the copies thereof required to be
filed with the Registrar.In case of default, the company and every officer of the company who is in default shall be liable to fine which may extend to Rs. 500 for every day during which the default continues.