Approval of the Annual Accounts

For most companies with head office in Portugal, the moment to present and approve the annual accounts and financial statements is here.

As companies must have their annual accounts approved within 3 months after the closure of the relevant financial year, companies which financial year coincides with the calendar year, have until the end of March to have their accounts approved by the general assembly.

Directors of the companies review the accounts prepared by the accounts and draft a Management Report and convene the Annual Shareholders’ Assembly. On such Assembly, the shareholders will discuss the documentation submitted by the management and resolve on the same, approving them or not. The shareholders will further resolve on the directors’ proposal for the application of results, and for limited companies by shares, the shareholders will further assess the management and supervision of the company.

The approved annual accounts are submitted together with the Simplified Corporate Information (known as IES) and deposited with the Commercial Registry Office, at which point they become public.

Companies which approved annual accounts are not deposited with the Commercial Registry are prevented from registering any other corporate acts, including the change of directors and auditors.

The content of this information does not constitute any specific legal advice; the latter can only be given when faced with a specific case. Please contact us for any further clarification or information deemed necessary in what concerns the application of the law.