Authentication of accounts

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2012 Is it must that the accounts should be authenticated by MD or two directors shall suffice.What in case MD is out of country

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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26 June 2012 The requirement of signing the accounts by MD is mandatory if company have MD. It has not, however, to be interpreted so rigidly that if MD is out of station, the annual accounts can not be signed by 2 directors. If MD is unable to attend the Board meeting at which accounts are to be approved by the board, he can sign them subsequently; but if he is not going to be able to sign for a long time, the Board may authorize any 2 or more directors to sign the accounts.

Charu Srivastava

Charu Srivastava (Expert)
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26 June 2012 In accordance with the Section 215 of the Companies Act, 1956, the Annual accounts are to be signed by the Secretary or Manager and two Directors one whom shall be MD if any.

If you go by Section 215(2) of the Companies Act, then the available directors can sign the balance Sheet stating the reason for the non compliance of Section 215(1).

Thanks & Regards

Charu

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