October 1st, 2009
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
- 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.
- 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.