Section 387 CAMA 2020

Section 387 Companies and Allied Matters Act is about Persons entitled to receive financial statements as of right. It is under Chapter 14 (Financial statements, audit and accounting records) of the Act.

(1) In the case of every company, a copy of the company’sfinancial statements for the year shall, at least 21 days before the date of the meeting at which they are to be laid in accordance with section 388 of this Act be sent to the following persons—

(a) every member of the company (whether or not entitled to receive notice of general meetings) ;

(b) every holder of the company’s debentures, (whether or not so entitled) ; and

(c) all persons other than members and debenture holders, being person so entitled.

(2) In the case of a company not having a share capital, subsection (1)shall not require a copy of the financial statements to be sent to a member of the company who is not entitled to receive notices of general meetings of the company, or to a holder of the company’s debenture who is not so entitled.

(3) Subsection (1) shall not require copies of the financial statements tobe sent to—

(a) a member of the company or a debenture holder, a person who is not entitled to receive notices of general meetings, and of whose address the company is unaware ;

(b) more than one of the joint holders of shares or debentures none ofwhom are entitled to receive such notices ; or

(c) those who are not entitled in the case of joint holders of shares or debentures, some of whom are not entitled to receive such notices.

(4) If copies of the financial statements are sent less than 21 days before the date of the meeting, it is, notwithstanding that fact, deemed to have been duly sent if it is so agreed by all the members entitled to attend and vote at the meeting.

(5) If default is made in complying with subsection (1), the company and each officer of it are liable to a penalty as the Commission shall specify in its regulations.