Page 279 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes 11.4 Statutory Report

Under Section 165 of the Companies Act, 1956 a public limited company must convene a general
meeting of its members not less than one month nor more than six months from the date of its
certificate to commence the business. This meeting is called a statutory meeting. This is the first
meeting of the company and is convened once in its life. This meeting is called to provide an
early opportunity of meeting the directors and to discuss the formation and prospects of the
company and terms of any contract mentioned in the prospectus. Under Section 165(2) the Board
of Directors has to send a copy of the statutory report to every member at least 21 days before the
date of holding the statutory meeting. Under Section 165(3), the Statutory Report must contain
the followings:
1. Total number of shares allotted distinguishing the shares allotted as fully paid or partly
paid up.
2. Total amount of cash received by the company on the allotted shares.

3. An abstract of receipt and payment.
4. Names, addresses and occupations of the directors, auditors, manager and secretary of the
company.
5. Particulars of any contracts which are to be submitted to the meeting for its approval.

6. The extent to which each underwriting contract, if any, has not been carried out and the
reason therefore.

7. The arrears due to calls from every director and from the manager.
8. The particulars of any commission or brokerage paid or to be paid in connection with the
issue or sale of shares to any director or manager.

Notes Under Section 165 of the Companies Act, 1956 a public limited company must
convene a general meeting of its members not less than one month nor more than six
months from the date of its certificate to commence the business.
The statutory report shall be certified as correct by at least two directors of the company and of
these, one must be managing director.
After the certification of the directors regarding the correctness of the statutory report, the
auditor of the company must also certify it as correct in regarding the total allotment of shares,
receipt of cash on allotted shares and abstract of receipts and payment. A copy of the certified
statutory report is dispatched to the Registrar for registration after sending the copies of the
report to the members of the company.

!
Caution After the certification of the directors regarding the correctness of the statutory
report, the auditor of the company must also certify it as correct in regarding the total
allotment of shares, receipt of cash on allotted shares and abstract of receipts and payments.

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