Section 219 of the Companies Act, 2013
Section 219 of the Companies Act, 2013 relates to the rights of a member of a company to inspect copies of audited financial statements of its subsidiary companies.
📘 Section 219 – Rights of Members to Copies of Audited Financial Statement
✅ Key Provisions:
Right to Inspect Financial Statements:
A member (shareholder) of a holding company has the right to inspect the audited financial statements (including consolidated financials) of each of its subsidiaries.
These must be kept at the registered office of the holding company.
Free of Cost Inspection:
The inspection is to be allowed free of cost during business hours, for a period of 21 days before the Annual General Meeting (AGM).
Applies to Subsidiary Companies:
This section applies where the financial statements of subsidiaries are not separately circulated to members but are part of consolidated financials of the holding company.
📌 Example:
If XYZ Ltd. is a holding company with 3 subsidiaries, and it presents only consolidated financial statements at its AGM, any member of XYZ Ltd. can visit its registered office and inspect the full audited financials of those subsidiaries 21 days prior to the AGM, without paying any fee.
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