Provisions on sending abstract of financial statement to shareholders

Provisions on sending abstract of financial statement to shareholders

(1) Notwithstanding anything contained elsewhere in this Act, a company listed on the stock exchange shall not be required to send the annual financial statement and director’s report to its shareholders or debenture-holders

                Provided, however, that an abstract of financial statement prepared pursuant to Sub-sections (2) and (3) shall be sent to every shareholder along with the notice of the annual general meeting.

(2) The abstract of the financial statement required to be sent pursuant to the proviso to Sub-section(10) shall be prepared on the basis of the annual financial statement of the company and the director’s report. The format of such statement shall be as specified by the Office based on the suggestions of the body specified to set accounting standards under the prevailing law.

(3) The abstract of financial statement shall contain, inter alia, the flowing matters:

• (a) Matter indicating that the abstract of annual financial statement is only an abstract of the annual financial statement of the company and their director’s report,

• (b) An opinion of the company’s auditor as to whether or not the abstract of annual financial statement is in consonance with the annual financial statement of the company and the director’s report and whether or not the abstract is consistent with the format specified pursuant to this Section,

• (c) Matter as to whether or not the auditor has made any remarks about the annual financial statement of the company and, if such remarks have been made, full details of such remarks and such materials as required to understand such remarks,

• (d) In cases where the auditor has mentioned in his report anything about the inadequacy of the accounts and accounting returns or about the company’s accounts not being verifiable with the records and returns maintained by the company or about the non-receipt of any such information and explanation as sought, full details thereof.

(4) Instead of sending the abstract of annual financial statement to the shareholders at their personal addresses pursuant to Sub-section (1), the company may publish it at least twice in a national daily newspaper at the time of publishing the notice of the meeting.

(5) In the event of publication of the abstract of the annual financial statement pursuant to Sub-section (4), there shall not be required to send the abstract to the personal addresses of shareholders.