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Message: [QUOTE="Munyaradzi Mafaro, post: 40355, member: 636"] Limited companies are required to share their yearly financial records with their members. These papers must clearly outline every business deal the company entered into during the year. The records must provide members with an accurate representation of the company's financial position and its outstanding liabilities. Anyone should be able to review these papers and understand exactly where the company stands financially. Directors use these same records to ensure they comply with all the rules set out in company law. The financial statements must meet strict legal standards. Companies cannot hide important money matters from their members. Every transaction must appear somewhere in the official paperwork. The balance sheet shows what the company owns and what it owes to others. The profit and loss statement reveals whether the company made a profit or incurred a loss that year. Company directors have clear duties they must complete each financial year. They must prepare copies of the annual accounts for all members to review. Directors also write a special report that explains what happened during the year. An outside auditor reviews all the numbers and provides their opinion on whether everything appears correct. These three documents work together to provide members with a comprehensive financial overview. The law requires directors to present these papers at the annual general meeting. Members gather to hear about company performance and ask questions about the financial results. This meeting provides an opportunity for everyone to understand how their company performed. Directors must answer questions about any part of the financial statements. The entire process helps keep company management accountable to the shareholders. [/QUOTE]

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