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Statutory of Declaration for Financial Management Director: Am I responsible or liable?

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asked on Jun 21, 2017 at 22:00
by   Melvo
edited on Jun 28, 2017 at 08:14
 
Being 1 out of the 2 directors for my company private limited. I'm a local director while my big boss as the foreign director.

Under each year audit period, I am required to sign a statement for "statutory declaration" whereby it mentioned something along this lines......

"I, (my name), being the director responsible for the financial management of <ABC company> , do solemnly and sincerely declare that the accompanying statement of financial position as at 31 Dec 2016, and the statement of comprehensive income, statement of changes in equity and statement of cash flow for the financial year then ended, together with the notes thereto, are the best of my knowledge and belief, correct and i make this solemn declaration conscientiously believing the same to be true and by virtue of provisions of the Statutory Declarations Act, 1960......"

May I know if this meant that I will be the only director responsible for any flaws with the audited report? or both director will be responsible?

Thanks.
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7 Answers

answered on Jun 21, 2017 at 23:01
by   vkpc
The one that sign is responsible lah.
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answered on Jun 22, 2017 at 03:50
by   Melvo
edited Jun 22, 2017 at 03:58
by   Melvo
Reason given by CFO was that the foreign director will still be liable just that because he is not in country, and not convenient to sign it therefore having one director to sign on behalf, but still be liable by both.

From your answer provided, does this meant this not hold true and for sure the other foreign director holds 0% liabilities in any case of flaws?
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answered on Jun 22, 2017 at 18:15
by   vkpc
Reason given by CFO was that the foreign director will still be liable just that because he is not in country, and not convenient to sign it therefore having one director to sign on behalf, but still be liable by both.

As a director you should know that hear-say things do not hold water.
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answered on Jun 22, 2017 at 20:51
by   Melvo
edited Jun 28, 2017 at 08:15
 
Any suggestion what I should do next?

i.e. quite or get some letter stating I'm just a rubber stamp acting on behalf and not liable for it? Not sure if that is effective from legal stand point.
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answered on Jun 22, 2017 at 21:19
by   vkpc
edited Jun 28, 2017 at 08:15
 
Since you are the only local director, of course you are the director responsible for the financial management of the company. 
Which other director is closer to the operations and bookkeeping?

Letters have no legal effect.
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answered on Jun 23, 2017 at 05:13
by   Melvo
edited Jun 28, 2017 at 08:18
 
Thanks for the valuable and constructive feedback.

I'm closer to operations while the foreign director who is my big boss closer to the Chief Financial Officer (CFO) and Financial Controller (FC). I have visibility after they have the decision on their strategic moves.

Sounds very vulnerable and best not to sign anything then.
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answered on Jun 23, 2017 at 05:15
by   Melvo
edited Jun 28, 2017 at 08:19
 
Thus formal letter doesn't help too.... sigh!

I was previously asking for a letter to hold me not liable, prior to me signing it on behalf, stating I have no involvement on management decision.
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