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CS Executive · Company Law and Practice · Accounts and Auditors

A Tribunal has ordered, under section 130, that the accounts of Veda Pharma Ltd. be revised and recast. What is the legal effect of the accounts so revised?

The revised or recast accounts are final. Section 130(2) states that, without prejudice to the other provisions of the Act, accounts revised or recast under the Tribunal's or court's order shall be final, with no need for shareholder approval.

  1. AThey remain provisional until approved by shareholders
  2. BThey are final, without prejudice to other provisions of the ActCorrect
  3. CThey must be re-audited and re-approved every year
  4. DThey are valid only for income-tax purposes

Explanation

Section 130(2) provides that, without prejudice to the other provisions of the Act, accounts revised or recast under section 130(1) shall be final. No shareholder approval or limitation to tax purposes is stated.

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