Section 215 - MD a signatory

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A person is appointed as MD in May 2011. Section 215 mandates that MD needs to be a signatory to accounts. His contention is that  he was not associated with the company from 1/4/10 till 31/3/11.

What is to be done

 

Thanks

Replies (10)

The process should be read in sense with its intention, MD is sining on behalf of the Board the same Board which approved the Financials. If he was an MD in that meeting it is his obligation to sign it on behalf of the Baord.

Therefore inany case he needs to sign the financials.

Hello,

Section 215 clearly says that the balance sheet and profit & loss accounts are required to be signed by the Managing Director if there is one. Therefore, the board meeting in which the accounts are approved and signed if there is a Managing Director than he should sign the same on behalf of the Board irrespective of the fact as to whether he was there as such during the period to which the accounts relate or not. 

 

Regards

Originally posted by : Vaibhav Shukla

Hello,

Section 215 clearly says that the balance sheet and profit & loss accounts are required to be signed by the Managing Director if there is one. Therefore, the board meeting in which the accounts are approved and signed if there is a Managing Director than he should sign the same on behalf of the Board irrespective of the fact as to whether he was there as such during the period to which the accounts relate or not. 

 

Regards

agreed                                   

I endorse the View of Vaibhav....

The date of signing is the date on which the Balance Sheet is approved and if  on that date the person is there he has to sing the balance sheet and the same is applicable to Director/ MD / Secretary.

i agree with mr vaibhav

Agree with Vaibhav Sir & Ankur Sir.
 

yes i agree with vaibav and ankur

Agree with the senior...bt I have a little doubt that is section 283 which says if any director absence from three consecutive meeting or from all  during the three month without proper permission than he will be removed from his office.

In this regard I think He can not sign the same because He is not related with the company for one year.

Other views for correction are expected........

Dear Bijoy Ji, As i clearly said that if he is the director as on the date of meeting he can sign. He he ceased to be a director, then the question of signing by him was not arose.

Dear Bijoy,

Section 283 is applicable when a person being a director is absent from three consecutive meetings of the Board of Directors in his capacity as a Director, whereas as per the query the contention of the person appointed as MD is that he was not associated with the company during the financial year to which the accounts relate thus he is not required to sign the same. Since he has been appointed as an MD in May 2011 therefore the question of his missing the three consecutive board meetings does not even arise here. Had he missed the meetings after his appointment as such then only he would have been liable to vacate his office under section 283. 

Regards 


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