can an independent director sign balance sheet

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2011 In one of our client company an independent director is appointed on 10th of june. at the time of appointment he was not holding DIN can sign/authenticate balance sheet which was placed for approval in the same meeting in which the proposed resolution to appoint him is moved in the first instance.

my second query is that can the independent director be appointed as a consultant in one of the group companies? what are constraints/what is the position if he is going to be appointed in an unlisted public company
It is an urgent query, i request the learned members to help me in this regard

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

02 July 2011 No he cannot as he is the party to the resolution

A qualified person can be appointed as a director as well a consultant

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2011 Thanks for the reply sir, but i am not able to understand in what context he becomes party to the resolution approving the balancesheet, can you please clarify this in this regard

CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)

02 July 2011 First of all after companies Amendment Act 2006, no body can be appointed as director unless he has obtained DIN. In your case, even appointment as director without having DIN is not a valid appointment.

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