December 31st is almost 6 months behind us. And while there’s no question of celebrating the Martial’s in the same way as the Sylvester’s, the fact remains that there’s still plenty to look forward to for the (vast) majority of companies that have opted to close their accounts on December 31.
Companies must submit their financial statements to their shareholders for approval within 6 months of the end of their last financial year.
Therefore, companies that have opted for a December 31 year-end must approve their financial statements by June 30 at the latest.
Unless otherwise stipulated in the company’s bylaws, various documents must be sent to shareholders at least 15 days before the meeting (i.e. by June 15 at the latest):
– A duly convened meeting notice;
– A management report – where required by law or provided for in the bylaws;
– A report on any regulated agreements;
– A report from the Statutory Auditors, if the company has one;
– The text of the resolutions.
The duly convened associates are invited to meet in order to deliberate on the appropriation of net income for the year.
This is when shareholders decide whether to pay dividends in the event of a profitable year.
Since the health crisis (Covid-19), many companies have taken a liking to holding their meetings by videoconference.
On this point, however, it should be remembered that, to be authorized, this type of meeting must be expressly provided for in the Articles of Association. However, videoconference is not authorized for decisions to approve the financial statements of SARLs.
Once approved, the financial statements for the year must be filed before the Trade and Companies register.
It is important to note that “very small companies” – i.e., those not exceeding two of the following three thresholds at the balance sheet date: €450,000 in total assets; €900,000 in net sales; and 10 employees – may file their accounts with a confidentiality clause, so that their balance sheet, income statement and any appendices are not published.
“Small companies” (i.e. those that do not exceed two of the following three thresholds: €7,500,000 balance sheet total; €15,000,000 net sales and 50 employees) and medium-sized companies (i.e. those that do not exceed two of the following three thresholds: €25,000,000 balance sheet total; €50,000,000 net sales and 250 employees) can request the confidentiality of their income statement only.
