signing of balance sheet in case of 2 Managing Director

This query is : Resolved

Guest

Guest (Querist)

21 August 2009 In case where there are 2 Managing Director, 1 chairman and 5 directors in a compnay,whether both the MD should sign the balance sheet as per section 215 ?
Also clarify whether chairman of the company is mandatorily required to sign balance sheet as required by section 215 ?

Guest

Guest (Expert)

21 August 2009 Dear Neha

There are two things in Companies Act:

(1) Signing of the balance sheet and Profit and loss account (215)
(2) Signing of the Board's report (217)

The first one is required to be signed by at least two directors one of whom shall be a managing director where there is one.

Hence, it is not mandatory that both the MDs should sign the BS and P&L however one of them should sign in addition to any one more director.

Please note that Chairman signatures are not required as per Section 215

However, in case of Board's report, chairman signatures are required as per Section 217.

Hope this assists you.

Thanks & Best Regards

CA Himanshu Garg
ca.hims@gmail.com

Ankur Garg

Ankur Garg (Expert)
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21 August 2009 Hi Neha,

If you go by the language of section 215(1)(ii) it is not required at all that both should sign the balance sheet.

No. Chairman of the company is not mandatorily required at all to sign balance sheet.

Read the language of Section 215(1)(ii) carefully.

Regards

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