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As per Section 220 of the Companies Act, 1956, the balance sheet and Profit and Loss account of the company have to be filed with the Registrar of Companies within 30 days of the annual general meeting. But as per the Circular vide No 57/2011 dated July 28, 2011, issued by the Ministry, the balance sheet and P&L account can be filed without any additional fee up to November 30 in XBRL form by certain companies. Since there is no amendment to Section 220 of the Companies Act to this effect, kindly clarify if the filing of Annual Accounts beyond 30 days of AGM would be a violation?
Murali Manohar, Hyderabad
It is a settled position that beneficial circulars would prevail if they cut into the legislative prerogative. In any case, the Department cannot make a grievance out of its own magnanimity. Obviously, it cannot proceed against a company taking advantage of its own circular.
Labour reforms
What do multinationals mean when they say there is a need for labour reforms in India? Is it the licence to hire and fire as in Western economies? If then, will we be in the same state as the US one day?
Ramkumar R, e-mail
It boils down to what you say, but to make industries hostage to archaic laws that require the State government's permission to remove any worker if it is employing more than 100 people is also equally bad. We must look for a via media that at once protects both efficient labourers and capital. You must not forget that productivity in India is very low and many employees take employment for granted and for lifetime.
Golden shares
What is a golden share?
Jim Rodrigues, Panaji
It was an instrument pioneered by the Margaret Thatcher government in the UK on the eve of disinvestment. A golden share in the hands of the government vested with it the right to veto any proposal of significance so that the new private promoter does not run amok and ride roughshod over public interest.
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