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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4430
Experience:  FCCA FCMA CGMA ACIS
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I have a question in relation to a set of company accounts.

Resolved Question:

hi,
I have a question in relation to a set of company accounts. The company being made of 2 directors and 2 shareholders. One director resigned after the year end but before signing the accounts off. But kept his shares..
The accounts usually read as "approved by the board" on the Directors report page.
My question being :- does the shareholder who is no longer a director need to be in a board meeting to approve these accounts.
to make things worse the 2 directors have no love for each other.
thanks
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, a Chartered Secretary, and pleased to be able to help you with your question.

The director who has resigned has no say in the company's operations from the moment of resignation so his or her presence at the Board Meeting approving the accounts is redundant. Their presence is not required to approve the accounts.

I do hope that you find my reply of assistance.

Customer: replied 1 year ago.

thanks,

just to clarify. a shareholder is not part of the board meeting.

I appreciate that most of the time the director is the shareholder.

regards

Expert:  bigduckontax replied 1 year ago.

No, a shareholder has no right of attendance or participation at board meetings uness invited by directors and even then he has no vote.

Yes, the dual position is very common in private companies.

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Expert:  bigduckontax replied 1 year ago.

Thank you foor your support.