Sorry, I can't quote statute.
But I am not sure that the focus should be on the signing of the accounts. If the company gave out loans while he was a director, is that not what a liquidator or tax audit would look at?
If they are then burried in a set of accounts, that would be compounding the offence.
If he,as a director, insists, in writing, that the directors repay the loans to the company, and the directors refuse to do so, then it would be good grounds for his resignation.
If the loans are very short term, Revenue or a liquidator might look on it less severely.
If the plan is to repay the loans just before the year-end and to take them out again immediately afterwards, then they would treat it very seriously.
I presume that the company is availing of the audit exemption? If not, he should inform the auditor.
Brendan