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

The Board of Sagar Steels Ltd has not authorised its chairperson to sign the Board's report. The company has a managing director and four other directors. Who must sign the Board's report under Section 134(6)?

The report must be signed by at least two directors, one of whom is the managing director. Section 134(6) allows the chairperson to sign alone only when authorised by the Board, and that authorisation is absent here.

  1. AThe chairperson alone
  2. BThe company secretary alone
  3. CAt least two directors, one of whom is the managing directorCorrect
  4. DAny two non-executive directors

Explanation

Section 134(6) says the report is signed by the chairperson if authorised by the Board; otherwise by at least two directors, one of whom is a managing director, or by the director where there is one director. The chairperson was not authorised, so two directors including the MD are needed.

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