What are the mandatory Company law compliances?
Benefits of company law compliances
- Board Meeting in a company
There should at least two board meetings conducted in a calendar year for private limited company. Out of all the Directors at least 1/3rd of the total number of directors or minimum 2 whichever is greater should be present at the meeting and be intimated at least 7 days prior about the agenda of the meeting. Minutes of the meeting is to be maintained at the registered office of the company.
- Annual General Meeting (AGM)
One AGM should be held every year and a gap of 15 months should exist between two AGMs. The purpose of AGM is to discuss financial statement, appointment of auditor, declaration of dividend, remuneration, etc.
- Appointment of the Auditor (Form ADT-1)
The First Auditor must be appointed by a company within 30 days of incorporation. The First Auditor will be appointed for five years and the appointment must be filed using Form ADT-1. When an auditor is appointed by the company then within 15 days from the date of the Annual General Meeting, form ADT-1 is to filed with the registrar of the company.
- Disclosure by Director
All the current directors of the company are required to fill the form MBP-1 to disclose their interest in any other company. Such disclosure is to be made every year on the first Board Meeting. Every Director of the Company in each financial year has to file with the Company disclosure of non-disqualification in Form DIR-8.
- Accounts to be audited by a statutory auditor
For preparing/verifying the annual report and financial statement and to get the financial report audited, company should have a statutory auditor who shall compulsorily audit the same.
- Filing of Annual Returns Form (Form MGT-7)
Every company has to file Form MGT-7 within 60 days from the date of conducting Annual General Meeting.
- Filing of Financial Statement (Form AOC-4 )
This is a mode of communication between the shareholders and the Board of Directors to inform them about their investment and make disclosure of all the financial transactions done. It is to be done within 30 days from the date of the Annual General Meeting. Particulars about the auditor and board meeting should be filed.
- Maintenance of Statutory registers
It is mandatory to maintain statutory registers, Minutes of Board Meeting books, Minutes of AGM books, creditors meeting, debenture holder meetings.
How often must an annual General Meeting be held?
- It ensures smooth functioning of the company
- Regular compliances helps a company build trust with shareholders.
- It prevents unnecessary litigation.
- It helps build good reputation of the company.
One AGM should be held every year and a gap of 15 months should exist between two AGMs.
What does the form MGT-7 include?
It should contain the following information:
- Details of the meeting (Board meeting or members meeting)
- Registered office and principal place of business along with other holdings and associate companies
- Debenture holders/members including the changes made
- Key managerial personnel, Directors and Promoters (mention the changes made)
- Remuneration of Directors and Key managerial personnel
- Details of the legal matters that the company is involved in
- Penalty and fine imposed on the company
- Shareholding pattern
- Debentures, shares and other securities
- Liability or indebtedness
- Certification of compliance matters
Frequently Asked Questions
What does the form AOC-4 include?
It should include the following:
How long does Sabkuch Legal take to provide company law related services?
- Details of the particulars on the Balance sheet. Balance sheet should be disclosed
- Details of the Profit and Loss account
- Details of the Corporate Social Responsibility
- All the Related Party Transactions that the company has entered into
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