CA Intermediate · Corporate and Other Laws · Accounts of Companies

Orion Logistics Ltd is an unlisted public company. Its annual general meeting is to be held on 30 September. The company's financial statements, auditor's report and board's report are ready. Mr Rao, a member, claims that the company must send him a copy of the financial statements at least 21 days before the meeting, but the company wants to send them only 14 days earlier, as the notice period approved by shorter notice consent. Which statement is correct?

Financial statements and related documents must reach every member and other entitled person at least twenty-one days before the AGM. A shorter period is valid only if the AGM itself is called at shorter notice with the consent of the required majority of members, not on the Registrar's approval.

1. AThe company may send them 14 days earlier because any shorter notice for the AGM is valid if the Registrar approves
2. BA copy is required to be sent at least twenty-one days before the AGM to every member, trustee and other entitled person, and the company may use a shorter period only if the AGM is itself called at shorter notice with consent of members as the Act permitsCorrect
3. CThe company need not send copies to members at all if the statements are available on its website
4. DCopies must be sent only to members holding more than 10% of voting power