Hello
We have a limited company that has three equal shareholder directors. Only two have approved the accounts - is this sufficient to proceed and file with just the two signatories?
Thanks
Replies (3)
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As ever with Company law - it depends
It depends on whether two make a valid quorum for the directors meeting where the accounts are to be approved.
If the usual Model articles are being used then the answer is ‘yes’. If the articles are silent on the quorum and specifically state that the Model articles are not being used then the quorum will default to a majority - which again in your case is two.
Just to add
The board of directors approves the accounts by the specified majority, but usually authorises just one director to sign the balance sheet.