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Star

08-14-2010, 02:06 AM
Dear All,

We have an unlisted company which have three directors on its board and one chief executive.

Articles of Association of this company states that minimum number of directors will be seven.

Will this fact have any effect on independent auditors' opinion?????


Regards,


*

ciapk

08-19-2010, 03:16 AM
It may not impact the opinion of the auditors as they are suppose to give their opinion whether or not books of account give true and fair view in accordance with applicable laws and IASs. They may wish to cover it in BOD covering letter to initialled report. However, as per CO 1984, if the business conducted with less then minimum number of directors required they will be personally liable to pay the debts contract during the period.

*It is supposed that all the members are also directors.

Star

08-25-2010, 04:41 PM
If business is conducted with less number of directors than as mentioned in articles of association, then transactions requiring BOD approval remain unapproved.

It should affect auditor's opinion i think.

Regards,

*
Accountancy Forum > The Profession > Corporate Governance > Minimum number of directors