Who must approve and sign the accounts on behalf of a company?

The requirement for the accounts of a company to be approved and signed on behalf of the company typically falls to the board of directors. This is because the board has the ultimate responsibility for overseeing the company's financial reporting and ensuring that the accounts are accurate and compliant with legal requirements.

The board of directors is tasked with the fiduciary duty to act in the best interests of the shareholders and to ensure that the company adheres to proper corporate governance practices. By signing the accounts, the board is affirming that they have reviewed the financial statements, that they believe the accounts accurately reflect the company's financial position, and that they comply with relevant legal standards and accounting principles.

While shareholders have a say in certain corporate matters and can influence the direction of the company, they do not typically engage directly in the daily operational functions, including the approval of financial statements. The management team prepares the accounts but has to present them to the board for approval. External auditors provide independent assessments of the financial statements but do not have the authority to sign on behalf of the company. This structure helps maintain a clear separation between management and oversight, ensuring a check and balance system within the corporate governance framework.