Information to shareholders - queries on published accounts and their replies by chairman in annual general meeting, a healthy company practice

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..... a healthy company practice In a communication just received, the Department of Company Affairs has sought the views of ASSOCHAM on a suggestion made to Government for the amendment of the Companies Act so as to provide that when any shareholder sends to the company comments on the published accounts and board s report, the chairman should disclose the name of each such shareholder with the ques .....

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..... s entitled to receive 21 days before the date of the general meeting a copy of the balance-sheet together with the profit and loss account, the auditor s report and other documents required under the Companies Act to be annexed or attached to it, such as, the board s report. The board s report is virtually a general stock-taking to the working of the company over the year and is intended to explai .....

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..... , it is not possible for great majority of shareholders to participate directly in general meeting but a tendency has grown up among some shareholders to be keen of knowing what is going on in the company s affairs and in their attempt they occasionally send comments on the published accounts and reports to the board of directors with an expectation that the same would be answered and/or dealt wit .....

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..... ch of such shareholders with the question or subject-matter he raised in his letter in brief irrespective of its relevancy and should deal with separately in his speech. In dealing with this aspect by the chairman it is to be borne in mind that majority of shareholders do not possess the legal and/or technical qualifications which is required in putting forward questions to the board regarding com .....

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