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CS Executive · Company Law and Practice · Annual Report - Concepts

Kaveri Agro Ltd is a Government company whose members are the Governments of Karnataka and Tamil Nadu; the Central Government is not a member. Under Section 395, what must these State Governments do with the annual report?

Each State Government member must lay the annual report before the House or both Houses of the State Legislature, along with a copy of the audit report and comments upon or supplement to the audit report. Parliament is relevant only where the Central Government is a member under Section 394.

  1. ASend it only to the Registrar of Companies for filing
  2. BLay it before the House or both Houses of the State Legislature with the audit report and comments upon or supplement to itCorrect
  3. CLay it before both Houses of Parliament with the CAG comments
  4. DPublish it in the Official Gazette without placing it before any legislature

Explanation

Under Section 395(1)(b), the State Government must, as soon as may be after preparation, lay the report before the House or both Houses of the State Legislature together with a copy of the audit report and comments upon or supplement to it. Laying before Parliament is the Central Government's duty under Section 394.

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