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Is md mandatory for a company under ca 2013

(Guest)

In Section 134, it states that the Financial Statements shall be signed by any of the following:

1. Chairperson, if he is authorised,

2. Atleast two directors, one must be MD,

3. CFO, if any

4. CS, if any or

5. CEO, if he is a director.

So for a small private company where Chairperson, CFO, CS, CEO are not appointed is MD must as it doesn't say "MD, if any" like it used to be earlier and implying that two normal directors can't sign. The same can also be observed in signatories of Director's Report.

Conclusions and Discussions on the topic will be appreciated.

Thanks in advance.

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P C Agrawal (Registered independent director Past Ch) (8229 Points)
Replied 14 November 2014

Please read the Sections carefully:

Sec.134(1):

"The financial statement, including consolidated financial statement, if any, shall be approved by the Board of Directors before they are signed on behalf of the Board at least by the chairperson of the company where he is authorised by the Board or by two directors out of which one shall be managing director and the Chief Executive Officer, if he is a director in the company, the Chief Financial Officer and the company secretary of the company, wherever they are appointed, or in the case of a One Person Company, only by one director, for submission to the auditor for his report thereon."