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CA Intermediate · Corporate and Other Laws · Accounts of Companies

Kaveri Pharma Ltd, a listed company, prepares its financial statements for the year ended 31 March. The Board approved and signed the financial statements. Who must sign them on behalf of the Board, as per the Companies Act, 2013?

Financial statements are signed on behalf of the Board by the authorised chairperson or by two directors, one being the managing director where there is one, along with the CEO, CFO and company secretary wherever appointed. Other combinations of signatories are not sufficient.

  1. AThe chairperson alone, whether or not he is a director
  2. BAny two directors, including the managing director
  3. CThe chairperson of the audit committee and the company secretary only
  4. DBy the chairperson authorised by the Board, or by two directors of whom one is the managing director, if any, together with the CEO, the CFO and the company secretary, wherever they are appointedCorrect

Explanation

The financial statements must be signed on behalf of the Board by the chairperson (if authorised by the Board) or by two directors, one of whom is the managing director if any, and also by the CEO, the CFO and the company secretary, wherever they are appointed. Any other combination of signatories listed in the remaining options does not meet this requirement.

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