Amended and updated notes on section 394 of Companies Act 2013. Detail discussion on provisions and rules related to annual reports on Government companies.
Chapter XXIII (Section 394–395) of the Companies Act, 2013 (CA 2013) deals with the provisions related to Government Companies. Section 394 of CA 2013 provides for annual reports on Government companies.
Recently, we have discussed in detail section 393 (Company’s failure to comply with provisions of this Chapter not to affect validity of contracts, etc.) of CA 2013. Today, we learn the provisions of section 394 of the Companies Act 2013.
The provisions of section 394 are effective from 12th September, 2013. You may refer Notification No. S.O. 2754(E) issued dated 12-09-2013. In this article, you will learn detail of the provisions of section 394 the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XXIII |
| Chapter Name | Government Companies |
| Section No. | 394 |
| Section Name | Annual reports on Government companies |
| Monthly Updated Edition | Company Law PDF |
Section 394 of Companies Act 2013: Annual reports on Government companies
Section 394 shall come into force on 12th September, 2013 vide Notification No. S.O. 2754(E) dated 12.09.2013.
(1) Where the Central Government is a member of a Government company, the Central Government shall cause an annual report on the working and affairs of that company to be—
- (a) prepared within three months of its annual general meeting before which the comments given by the Comptroller and Auditor-General of India and the audit report is placed under the proviso to sub-section (6) of section 143; and
- (b) as soon as may be after such preparation, laid before both Houses of Parliament together with a copy of the audit report and comments upon or supplement to the audit report, made by the Comptroller and Auditor-General of India.
(2) Where in addition to the Central Government, any State Government is also a member of a Government company, that State Government shall cause a copy of the annual report prepared under sub-section (1) to be laid before the House or both Houses of the State Legislature together with a copy of the audit report and the comments upon or supplement to the audit report referred to in sub-section (1).