Whether companies seeking exemption under the sub‑section should indicate in application whether the same has been made with approval of board of directors and forward copy of resolution along with application - Companies Law - Circular: No. 1/84/[1/1/84‑CL‑V

Circular: No. 1/84/[1/1/84 CL V and 3/83/83 CL VI], dated 19 4 1984. Subject:- Whether companies seeking exemption under the sub section should indicate in application whether the same has been made with approval of board of directors and forward copy of resolution along with application It has been noticed that companies who make applications under section 211(4), seeking exemption in regard to the matters to be stated in the balance sheet and profit and loss account do not indicate in the said application whether the same has been made with the approval of the board of directors. In this connection I am directed to say that sub-section (2) of section 210 provides that board of directors of the company shall at every annual general meeting of the company lay before it a balance sheet and profit and loss account, etc. Section 215 provides for the manner in which the balance sheet and profit and loss account should be authenticated. It is, therefore, clear that the duty to prepare and present the balance sheet and profit and loss account is cast upon the board of directors of the company. A careful examination of section 211(4) would reveal that the Central Government can grant the exemption under the said sub section either on the application by the board of directors or with its consent. In view of this position, it is necessary that any company which seeks exemption under section 211(4) should indicate in the application whether the same has been made with the approval of the board of directors and forward a copy of the board s resolution in this regard along with the application.