Authentication of balance sheet and profit and loss account by secretary obligatory and whether secretary renders himself for errors in balance sheet only as officer - Companies Law - No. 7/72,

Circular: No. 7/72, dated 12 ‑ 5 ‑ 1972. Subject: A uthentication of balance sheet and profit and loss account by secretary obligatory and whether secretary renders himself for errors in balance sheet only as officer It has come to the notice of the Department that frequently the question as to how far the secretary of a company renders himself liable for errors, etc., in a balance sheet when he authenticates the same in pursuance of the provisions of section 215, is being raised. The Department is of the view that as the authentication by the secretary is on behalf of the board of directors and not in his personal capacity, the secretary can be held responsible regarding errors, etc., only as an officer of the company within the meaning of section 628 and not because of authentication by him under section 215 as such. Where, however, the secretary is charged with the responsibility of maintaining the accounts and also assisting the auditor at the time of auditing, he cannot conceivably escape consequence of any wrong statement in the accounts.