Corporate Secretary
Directors’ Report Singapore
It is important to note that the directors of the company who sign off will be held liable for the statements made in the Director’s Report and its completeness, when judged against the requirements as stipulated in the Companies’ Act.
What is a Director’s Report?
A Director’s Report is typically presented as part of a company’s audited or unaudited accounts and annual report, among the balance sheet, cash flow statement and other documents. For companies that are considered exempt, they must submit their unaudited management accounts as part of an annual report, along with a director’s report.
Information to help shareholders understand
Why Must You Prepare a Directors Report?
In accordance with Singapore Companies Act, Section 201, it is mandatory to submit the director’s report because it is a way that the Accounting and Corporate Regulatory Authority (ACRA) ensures investors and shareholders are protected.
Providing the information presented above helps shareholders can make better informed decisions and can hold the directors of the company responsible for various reasons deemed obligatory.
What are the Basic Requirements written in the Director’s Report?
Generally it must include the names of the persons who, at any time during the financial year, were directors of the company; the amount (if any) that the directors recommend should be paid by way of dividend; and a statement in respect of disclosures provided to the auditors.
According to Section 201 of the Singapore Companies’ Act, a Director’s Report should satisfy the below basic requirements:
- Approved by a Directors’ Resolution in Writing
- Includes the profit or loss of the company for the financial year
- Includes a statement of the company’s affairs at the end of the financial year
- States whether each director has disclosed his or her interests in the company
- Signed by a minimum of two directors (If a company only has one director, the sole director may sign off.)
- Names of directors in office as at the date of the Director’s Report (If a director has resigned or has been appointed during the financial period under review, their date of resignation or appointment must be indicated).
It is important to note that the directors of the company who sign off will be held liable for the statements made in the Director’s Report and its completeness, when judged against the requirements as stipulated in the Companies’ Act.
Can Tianlong Assist You with the Drafting of a Director’s Report
We can provide the latest Singapore Director’s Report & Accounts for any company registered in Singapore. The available Company accounts vary according to the classification of the company. The documents are obtained from the Singapore Accounting and Corporate Regulatory Authority.
To know more about the services and fees structure, please feel free to call us on +65 6100 1026 or drop a mail at info@tianlong.com.sg.
