Companies Act Section 395 — Annual reports where one or more State Governments are members of companies
CHAPTER XXIII GOVERNMENT COMPANIES
Commercial / Corporate
Summary
Sub-section (1) sets out the duty of State Governments when the Central Government is not a member of a Government company. In such a case, every State Government that is a member of that company must prepare an annual report on the company's working and affairs. If only one State Government is a member, that single State Government must prepare the report.
Under clause (a) of sub-section (1), the annual report must be prepared within the time period specified in sub-section (1) of section 394. Under clause (b) of sub-section (1), as soon as possible after the report is prepared, it must be laid before the House or both Houses of the State Legislature, along with a copy of the audit report and any comments upon or supplement to that audit report, as referred to in sub-section (1) of section 394.
Sub-section (2) states that the provisions of this section and section 394 apply, as far as possible, to a Government company that is in liquidation, in the same way they apply to any other Government company.
Official Text
(1) Where the Central Government is not a member of a Government company, every State Government which is a member of that company, or where only one State Government is a member of the company, that State Government shall cause an annual report on the working and affairs of the company to be—
(a) prepared within the time specified in sub-section (1) of section 394; and
(b) as soon as may be after such preparation, laid before the House or both Houses of the State Legislature together with a copy of the audit report and comments upon or supplement to the audit report referred to in sub-section (1) of that section.
(2) The provisions of this section and section 394 shall, so far as may be, apply to a Government company in liquidation as they apply to any other Government company.