J
johnpaul
Guest
Hello,
A friend of mine asked me and 3 others to become directors in his private limited company in which he is the 100% shareholder. We had a meeting with his accountant who is well established and regarded. The accountant talked us through what was required of directors and said that the accounts were all in order. We signed as directors. My friend asked would I be the second signatory on the accounts for the previous year (when I was not a director). I agreed and signed in the office, without ever looking at the accounts.
Since signing I have become nervous in case I have opened myself up to a potential liability. The Director of Corporate Enforcement states that "directors are obliged to carry out their functions with due care and diligence".
My questions are
Is it my function to view the accounts and ensure they are correct or is it my function to ensure the accountant who prepares them is qualified to do so? Is there anything further I should do now to ensure that I am fulfilling my duties? Should I ask now to see a copy of the accounts to see if they look correct?
Any guidance would be appreciated.
P.S. I have no reason to think that my friend has done anything dishonest.
A friend of mine asked me and 3 others to become directors in his private limited company in which he is the 100% shareholder. We had a meeting with his accountant who is well established and regarded. The accountant talked us through what was required of directors and said that the accounts were all in order. We signed as directors. My friend asked would I be the second signatory on the accounts for the previous year (when I was not a director). I agreed and signed in the office, without ever looking at the accounts.
Since signing I have become nervous in case I have opened myself up to a potential liability. The Director of Corporate Enforcement states that "directors are obliged to carry out their functions with due care and diligence".
My questions are
Is it my function to view the accounts and ensure they are correct or is it my function to ensure the accountant who prepares them is qualified to do so? Is there anything further I should do now to ensure that I am fulfilling my duties? Should I ask now to see a copy of the accounts to see if they look correct?
Any guidance would be appreciated.
P.S. I have no reason to think that my friend has done anything dishonest.