Regulation 56 — Audit Regulations 2020
Original Rule Text
56. Intimation by Government company or any other company of its formation
A Government company or any other company shall also intimate to the Comptroller and Auditor General about its formation along with the shareholding pattern, details of the management and a copy of the memorandum of association and articles of association within one month of its incorporation. Similarly, in the case of an existing company, the intimation about becoming a Government company or any other company under the Companies Act, 2013 and other details and documents shall be sent by the company within one month of such an occurrence.
What This Means
In addition to the ministry's obligation under Regulation 55, the government company itself must also inform the CAG about its formation within one month. The company must provide details of its shareholding pattern, management structure, and copies of its memorandum and articles of association. If an existing company becomes a government company, it must send the same information within one month of that change.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The company itself has a separate obligation to inform CAG (in addition to the ministry under Reg 55)
- 2Shareholding pattern and management details must be provided
- 3Memorandum and Articles of Association copies must be sent
- 4One-month deadline applies from date of incorporation or from when the company becomes a government company
- 5This dual intimation (by ministry and company) creates a safeguard against missed notifications
Practical Example
A new defence equipment manufacturing company incorporated under the Ministry of Defence must, within 30 days of incorporation, send the CAG its certificate of incorporation, shareholding pattern showing government equity, details of its board of directors and key management personnel, and copies of its MoA and AoA. This helps the CAG understand the company's mandate and governance structure before appointing a statutory auditor.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why do both the ministry (Reg 55) and the company (Reg 56) need to inform CAG separately?▼
What documents must the company provide to CAG?▼
Does this apply when a company becomes a government company through acquisition?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.