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SIGNING OF BALANCE SHEET BY THE MANAGING DIRECTOR

Company Secretary


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 ?

 
Reply   
 
Company Secretary and Compliance Officer

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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Hi Neha,

 

As per section 215 of Companies Act., 1956. Balance Sheet must be signed by 1. Secretary 2. MD (One is sufficient) 3. Two Directors one of them should be wholetime director.

 

Thanks

 
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CA,CS,CMA,LLb,M.Com


Originally posted by :NEHA JAIN
" 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 ?
"

Hello,

As per the language of Section 215 of the Companies Act, 1956 Balance Shet & Profit and loss account of a Company other than Banking Company should be authenticated on behalf of the Board of Directors. The following persons can sign it -

1. Manager or Secretary (if any)

2.at least 2 Directors - One of whom shall be a M.D Where there is one

Thus if there is a MD, then he must authenticate the Balance Sheet and P/L Account. where there are more than one MD still it is suuficient if it is signed by one MD.

So far as Chairman is concerned , it is not mandatory for him to sign but it is possible when there is Chairman cum Managing Director i.e. CMD.

Hope the explanation will be as per your requirement


 

 
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Company Secretary & Compliance Officer

Dear Neha,

 

The  above clarifications are quite clear

Thus in your case following signatures are required:-

1MD + 1 Director (may be Chairman) + CS (if any)

 
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As per Sec 215, the B/s should be signed by CS or Manager, if any, and Two Director and one shall be MD, if any. Here, the B/S is reaady, but the Secretary and the Manager resigned from the company, but still they are in the notice period. Can they sign the B/S? if yes, is it mandatory to sign the B/S by any one of them?

 
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PRACTICING CS Jalandhar 9914558709

the balance sheet must have been signed by atleast two directors, one of them must be managing director(if any), if there is not mg. director, then by 2 director at least. and if there is any secretary, his signatures are also mandatory in such case. no requirement of chairman is there as per law

 
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if a company has 2 directors and 1 wtd is it compulsory for wtd to sugn b/sheet

 
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