Position of CFO under companies Act 2013
- CFO is identified as Key Managerial Personnel u/s 2(19)
- CFO is identified as ‘officer in default’ u/s 2(59) and 2(60).
- CFO to be appointed by means of a Board Resolution u/s 203
- CFO shall not hold office in more than one company unless it is a subsidiary u/s 203(3)
- CFO to be named in the prospectus or information memorandum for issue of securities u/s 26.
- CFO is responsible for statements in prospectus, if he authorises the issue. section 34, 35.
- CFO is directly responsible for maintenance of books of accounts sec. 128(6).
- CFO is responsible for furnishing ‘true and fair’ view of the state of affairs in the financial statements u/s 129.
- CFO is responsible for filing financial statements with Registrar of Companies sec. 137.
- CFO authorises financial statements sec. 134.
- CFO is responsible for adhering to accounting standards Sec. 133.
- A director may be appointed as CFO (Table A -77). CFO can be a director.
- Where a CFO has to authorise a statement, and if the CFO is also a director, he shall authorise the statement as CFO. (Table A – 78)
