Introduction
The Board of Directors of a Company play a fiduciary role in protecting the interest of shareholders by providing adequate information on the company’s management and its functioning. They are the custodian of the money that the shareholders have invested in the company. Duty is cast upon the Board of directors to prepare and present a report every year along with balance sheet and profit and loss account to the shareholders at annual general meeting.
Every company must make Board’s Report to be presented to the members of the company, which forms part of the annual statement of accounts that is to be sent to them. Companies Act 1956 as well as listing agreement enumerates the items which are to be disclosed in the board’s report and the documents that are to be annexed and attached.
Board’s Report – What does it mean?
Section 217 of the Companies Act, 1956 enjoins upon the Board of Directors of the companies, a responsibility to make out a report to be sent to the members of the company. Section 210 of the Act postulates that the said report must be attached with every annual statement of accounts that are laid before the members of the company at the annual general meeting. The said report is known as Board’s Report.
Contents of Board’s Report under the Act
The matters which are to be included in the Board’s Report have been laid down in Section 217 of the Companies Act, 1956. They are as follows
