Explain What Is Meant By An Annual General Meeting, Annual Report And Accounts and Annual Return

October 1st, 2009 Comments off
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Earlier article describe the difference between the Articles Of Association and Memorandum Of Articles.

Below briefly describe in some commonly used-terms in both private and public limited company namely:-company’s annual general meeting, annual report and accounts and annual return:

Annual General Meeting ( abbreviation AGM)

  • Held only by limited company ( not in sole proprietorship or partnership)
  • Is a YEARLY meeting to which all shareholders are invited
  • The directors present the financial statements for the financial year which has just ended.
  • The financial statements are approved at this meeting
  • Some of the agenda specified in an AGM are:-
  • Approval of director fees
  • Appointment of auditors
  • Any vacancies on the board of directors are filled and others
Annual Reports and Accounts:

  • Is a summary of the company’s activities which must be sent to shareholders in both private and public limited companies each year
  • This report must contain at least the minimum of information required by the Companies Act
  • A copy must be filed with the Registrar of Companies
  • Some of the contents include:
  • Directors’ report on the previous year’s financial results
  • The balance sheet as at the end of the trading year
  • The Income statement
  • The Cash flow statement
  • Auditor’s report where external auditor also report on whether the financial statements show a true and fair view of the company’s financial position.
Annual Return:

  • This is the document sent to the Registrar of Companies ANNUALLY
  • This return gives particulars of directors and members plus a copy of the last balance sheet and income statement.

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Financial Accounting

 
 

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