Obligations of a company on incorporation

The following obligations under the Companies Act have to be fulfilled by the board of directors:

 

1. Statutory meeting (applicable to a public company limited by shares and guarantee having share capital): you must convene a General meeting of the members of the company within one month or not exceeding six months from the date of commencement of business. A 21 day notice along with a statutory report in accordance with Section 165 has to be forwarded to the members which is duly certified by two Directors (one to be the Managing Director). An Auditor shall also certify the statutory report so far as it relates to the allotment of shares and receipts and payments of the Company. A copy of this is also to be delivered to the Registrar.

 

2.         Annual General Meeting – You must convene the Annual General Meeting of the Company within 18 months of incorporation. The subsequent Annual General Meetings are to be held in a period of 15 months of the other.

 

3.         You must maintain books to record the minutes of all proceedings of every General Meetings, meetings of the Board of Directors or every Committee of the Board, to be recorded within 30 days of conclusion of every meeting.

 

4.         You must convene one meeting of the Board of Directors in every quarter.

 

5.         You must maintain a register of the members and the debenture holders.

 

6.         After receiving the money from the subscribers, you must allot the shares to them and issue the share certificates within 3 months after the allotment of the shares.

 

7.         You must maintain a register of investments in shares and securities by the Company (if made) not held in its own name, to be held jointly through its Directors, through a Depository, etc.

 

8.         You must appoint an Auditor or Auditors at each Annual General Meeting.

 

9.         You must obtain commencement of business certificate from the Registrar to commence the business (to be applicable to public companies).

 

10.       You must place before the Company at the Annual General Meeting the Balance Sheet and the Profit and Loss Account, also to be filed with the Registrar within 30 days of the meeting.

 

11.       You must file the annual return with the Registrar within 60 days of the Annual General Meeting.

 

12.       You should keep a book of accounts and cost records at the registered office.

 

13.       You must keep a copy of every instrument creating a charge on the assets of the Company at the registered office which has to be filed with the Registrar.