09 April 2010
As per section 215 of the Companies Act, 1956, every balance sheet and every profit and loss account of the company should be signed by the Company Secretary and by not more than two directors of the Company one of whom shall be a managing director where there is one.
In our Company, the Auditors had made a practice that apart from the two Directors and the Company Secretary, the head of the Accounts Department (even though he is not the director)sign the balance sheet and profit and loss account.Is this practice is ok? If so, whether a Board resolution to that effect is required?