Meaning of Statutory Report

Meaning of Statutory Report

The statutory report is a statement drafted by the directors of a public limited company to forward to the shareholders at least 21 days before the date of the meeting. A copy is also sent to the registrar of joint stock companies for registration. It is the mandatory submission of financial and non-financial information to a government agency.

Examples of Statutory Reports

The followings are the examples of the statutory report.

  1. Statutory Report submitted at the statutory meeting of the company.
  2. Directors’ Report to the Annual General Meeting.
  3. Annual Returns.
  4. Auditors’ Report.
  5. Reports by Inspectors appointed to investigate the affairs of the company.

After incorporation, a public limited company compulsorily arranges a meeting named statutory meeting with its shareholders within a period of not less than one month and not more than six months from the date at which the company is entitled to commence business. This meeting is held once in the lifetime of a company. It is held to inform the shareholders about the formation of the company, issue of shares, public subscription towards its share capital, the properties acquired, business prospects and so on. In this meeting, the members discuss the statutory report prepared by directors.

The statutory report contains the following information.

  • The total number of shares allotted whether fully paid up or partly paid up.
  • Total cash received for shares allotment.
  • An abstract of cash receipts and payments.
  • The name, address, occupation of the directors of the company.
  • Material information of a contract.

Share This Post