Board Meeting : Approval of Annual Accounts

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Maharshi Shah

Annual Account
Board Meeting
Last updated on April 28th, 2021

A board meeting is a formal gathering of a Board of Directors. Most of the organizations, being public or private, profit or non-profit, are ultimately governed by a body commonly known as Board of Directors. The members of this body cyclically meet to discuss strategic matters like Approval of Annual Accounts.

One of the various annual compliance activities of a Company is to approve the financial statements of the Company by the Board of Directors of the Company before submission to the auditors of the Company for Audit. The Board Report of the Company should be approved by the Board of Directors of the Company before signing the same by the authorized signatories of the Company.

Board Meeting - Approval of Annual Accounts

Thus, review your Board Meeting Minutes immediately after the meeting. When your board meeting minutes are complete and finished, make sure they are distributed to board members as soon as possible. Once the minutes are approved by a vote of the members during the board meeting, they become part of the official record of the organization. It’s important that a copy of all minutes are kept in one place.

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Download Sample Board Meetings for Approval of Annual Accounts
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Download Sample
Download Sample Board Meetings for Approval of Annual Accounts
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FAQs

Can the Board delegate the power of approval of financials?

No. The Board cannot delegate the power of approval of financials to any committee of Directors (Managing Directors, Manager or any Principal officer) at the Company.

Who needs to sign the financial statements?

The financial statements must be signed by 2 directors, or 1 if the Company only has 1 director. The Directors must sign and date the financial statements before or on the same day the audit report is signed and dated. Furthermore, the Directors who sign the financial statements must be current Directors at the date of signing.

What information are shareholders entitled to?

The main documents of interest to shareholders will be the Company’s annual report and accounts. Each shareholder has the right to receive these when they’re issued generally and on request. Shareholders also have the right to receive a copy of any written resolution proposed by either the Directors or shareholders.

Got Questions? Ask Away!

  1. Hey @Nandana

    Apart from the auditor, the financial statements shall be signed by the Chairperson of the Company or by two directors, once of whom should be an MD, if any, and by the CEO, CFO and CS of the Company, if they are appointed.

    Hope this helps!