Section 136 of CA 2013 : Section 136: Right Of Member To Copies Of Audited Financial Statement

Explanation using Example

Imagine a scenario where ABC Pvt. Ltd. is a company that has scheduled its Annual General Meeting (AGM) for May 15, 2023. According to Section 136 of the Companies Act, 2013, ABC Pvt. Ltd. is required to send a copy of its financial statements, auditor's report, and other relevant documents to its shareholders at least 21 days before the AGM, which would be by April 24, 2023.

However, due to unforeseen circumstances, the company is only able to send these documents on April 30, 2023. Despite this delay, the company can still be compliant with the law if the shareholders who hold the majority of voting rights and represent at least 95% of the paid-up share capital with voting rights agree to this shorter notice.

If ABC Pvt. Ltd. were a listed company, it would also need to make these documents available for inspection at its registered office for at least 21 days before the AGM and place them on its website. Additionally, if it had any subsidiaries, especially foreign ones, their audited (or unaudited, if applicable) financial statements would also need to be accessible on the website or provided upon request by any shareholder.

In case the company fails to comply with these requirements, it would face a penalty of twenty-five thousand rupees, and the officers responsible would face a penalty of five thousand rupees each.