Presentation of annual reports via the Company Registration Portal https://ettevotjaportaal.rik.ee/ is very simple for entrepreneurs. However it is often forgotten that certain rules on approval of the annual report must still be followed. Overlooking the rules may lead to incorrect accounting, entries and mismanagement.
For example, the supervisory board must present its opinion on the annual report, the approved annual report together with the proposal for distribution of profit or covering loss must be approved by the general meeting of shareholders, and minutes of the shareholders meeting must be prepared. Distribution of profit or covering loss may not be recorded in the annual report of the following financial year based on a proposal by the management board, but this accounting entry must be based on a resolution of shareholders. Note also that if you have not yet converted the company share capital into Euros, the decision to do so can be taken at the general meeting approving the annual report, followed by filing the documents with the commercial register.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.