Question

State the following statement is True or False.

Annual Report is prepared by members.

• A. True
• B. False

Answer 1

The correct option is B False

This statement is False because of the following reasons :

(i) The Board of Director is the authority who convene this meeting.

(ii) This authority is delegated to the secretary in Board Meeting.

(iii) The secretary has to ensure the preparation of annual report and annual accounts.

(iv) These reports and financial statement need to be approved by the board and the auditors.

(v) The secretary presents the Annual Accounts to the directors for approval and obtains signature.

(vi) He also sends Annual Accounts to the auditor for audit.

(vii) The secretary then drafts the Directors' Report. This report presents the performance of the company during the year.

Hence, it is the secretary and not the members who prepare annual report.