Annual accounts: what happens when there is no agreement to approve the accounts by all partners
Posted: Sun Dec 22, 2024 4:48 am
We are in the process of calling the ordinary annual meetings of companies and the corresponding approvals of the annual accounts. In most companies, the approval of the annual accounts by the company is usually carried out unanimously (all shareholders approve them) and at the universal meeting (100% of the share capital is present at said meeting).
The problem arises when we have partners who are present at the meeting and vote against the approval of the accounts . From here, different ranges and options open up that we have to take into account.
The negative vote on the approval of accounts vs. the majority that approves them
In commercial companies , corporate qatar email list resolutions are approved by a vote. The result of the vote will be approved by a simple majority, by a qualified majority or by a statutory majority. In the case of the approval of accounts, these will be ratified when the simple majority of the shareholders present at the meeting approve them, unless the bylaws state otherwise.
Let's look at an example. A limited company with 10 partners, each holding 10% of the share capital. Let's suppose that 7 partners (70% of the share capital) attend the general meeting to approve the annual accounts, and 4 partners vote in favour of approving the accounts and 3 against.
Since a simple majority of the partners present and exceeding one third of the share capital voted in favour of approving the accounts, the accounts are approved.
Lack of approval of annual accounts, a problem for the administrator
The problem arises when, in a case like the one described in the previous example, only 3 partners voted in favour of approving the accounts. In this case, the accounts are not approved, since the majority is opposed to it and, n the event that the accounts are not approved, the administrative body must notify the company of the certification of the minutes in which the annual accounts are not approved and has two options:
Reformulate the annual accounts until they are approved by the general meeting.
Proceed to the liquidation phase of the company and resignation of the administration.
In any case, when a company does not reach the necessary agreement to approve the accounts, that company has a serious problem that must be resolved as soon as possible.therefore, we could not file the annual accounts with the company.
The problem arises when we have partners who are present at the meeting and vote against the approval of the accounts . From here, different ranges and options open up that we have to take into account.
The negative vote on the approval of accounts vs. the majority that approves them
In commercial companies , corporate qatar email list resolutions are approved by a vote. The result of the vote will be approved by a simple majority, by a qualified majority or by a statutory majority. In the case of the approval of accounts, these will be ratified when the simple majority of the shareholders present at the meeting approve them, unless the bylaws state otherwise.
Let's look at an example. A limited company with 10 partners, each holding 10% of the share capital. Let's suppose that 7 partners (70% of the share capital) attend the general meeting to approve the annual accounts, and 4 partners vote in favour of approving the accounts and 3 against.
Since a simple majority of the partners present and exceeding one third of the share capital voted in favour of approving the accounts, the accounts are approved.
Lack of approval of annual accounts, a problem for the administrator
The problem arises when, in a case like the one described in the previous example, only 3 partners voted in favour of approving the accounts. In this case, the accounts are not approved, since the majority is opposed to it and, n the event that the accounts are not approved, the administrative body must notify the company of the certification of the minutes in which the annual accounts are not approved and has two options:
Reformulate the annual accounts until they are approved by the general meeting.
Proceed to the liquidation phase of the company and resignation of the administration.
In any case, when a company does not reach the necessary agreement to approve the accounts, that company has a serious problem that must be resolved as soon as possible.therefore, we could not file the annual accounts with the company.