Section 179(3)(g) requires the adoption of financials and director report.
Purpose: The purpose of Section 179(3)(g) is to ensure that companies adopt their financial statements and director's report in a timely manner.
Timeline: The financial statements and director's report must be adopted within 180 days from the end of the financial year.
Penalty: Non-compliance with this section can result in penalties ranging from Rs. 50,000 to Rs. 5 lakhs.
Form: The financial statements and director's report must be adopted in the form of a resolution at a board meeting. Form MGT-14
Reporting Authority:The reporting authority for this section is the Board of Directors of the company.
Other: It is important to note that the financial statements and director's report must be adopted before they can be presented to the shareholders at the Annual General Meeting. Additionally, the financial statements must be audited by a qualified auditor before adoption.
