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Signing of financial statements by resigned/newly appointed Director

Vijeta Nathani (Student ) (56 Points)

25 April 2014

Dear All,

Please Let me know, if you know anything about my following query..

If a Director resigns on 31/03/2014; Can he Sign the financial Statements of FY 2013-2014. And if New Director gets appointed on 31/3/2014 or 01/04/2014, Can he sign the financial statements of FY 2013-2014? Kindly Reply along with the provisions or Sections related to it.

Regards,
Vijeta

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2 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 25 April 2014

I do not know whether I know the answer or not. But I will try.

Financial statements have to be approved by the Board and signed by persons specified in Sec.134(1) of CA 2013. Hence only the directors on the date of approval can be authorised to sign it.

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Vijeta Nathani (Student ) (56 Points)
Replied 25 April 2014

But in case, if i am a newly appointed director and I sign the financial statements. And In case, later on, it is proved that financial statements does nt show the true and fair view or there is a kind of window dressing. Will I be held liable for punishment? Or can i give reason that I was not a Director for the FY that statements belong to?