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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Disclosures and Website Disclosures

Meghdoot Textiles Ltd, an unlisted public company, has a Managing Director and a Chairperson. The Chairperson has not been authorised by the Board to sign. The Board has approved the financial statements for the year. Who must sign them on behalf of the Board for submission to the auditor, besides the CEO, CFO and company secretary where appointed?

Two directors, one of whom is the managing director, must sign the financial statements along with the CEO, CFO and company secretary where appointed. The Chairperson can sign alone only when authorised by the Board, and a single director signs only in a One Person Company.

  1. AAny one director
  2. BTwo directors, one of whom is the managing directorCorrect
  3. CThe Chairperson alone
  4. DThe company secretary and the statutory auditor

Explanation

Under section 134(1), the financial statement is approved by the Board and then signed by the chairperson if authorised by the Board, or else by two directors of whom one is the managing director, along with the CEO, CFO and company secretary wherever appointed. Since the Chairperson is not authorised and an MD exists, two directors including the MD must sign. A single director suffices only for a One Person Company.

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