24 October 2019
Hi, Please clarify this query In a pvt ltd company 2 directors are there having 50% of shares each. one of them is MD and another is ordinary director.ordinary director is not willing to sign on the financial statements.as per law minimum 2 directors has to sign on it. Now what is the process to be followed to compliance the law.is MD alone can appoint another director or is there any alternative regarding this
28 October 2019
As per Section 139(1), financial statement shall be signed by a Chairperson of the company, if authorised by the Board or two directors. Hence, in your case if you appoint MD, as Chairperson of the company and authorise him for signing the financial statement on behalf of the company, then you dont need to get the financial statement signed by both dirctors, only MD who is also the chairperson of the company and also authorised to sign the financial statement, can sign the financial statement.
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