Directors' Responsibility Statement - Obligation Of Directors And Associated Issues

Abstract: This write-up examines the responsibility of directors in relation to the disclosures under the directors' responsibility statement, consequent obligations cast on the directors under the Companies legislation, and the role of shareholders in relation thereto.

Introduction

The financial statements, in respect of a financial year, of a company, are required to give a true and fair view of the Company's state. Accounting standards have been notified, which must be complied with in preparing such financial statements. The financial statements, together with the auditors' report and report by its Board of Directors, are laid before the Company's shareholders for adoption.