HI,
In a company, how is one designated to be an authorized signatory? For example, if a company has to authorize an employee to sign offer letters, is there any legal procedure to be followed? I have heard that it may be necessary for a company to have the board pass a resolution to the effect that it is authorising the employee with specific powers and register the same with the registrar of companies. Is this correct?
From India, Bangalore
In a company, how is one designated to be an authorized signatory? For example, if a company has to authorize an employee to sign offer letters, is there any legal procedure to be followed? I have heard that it may be necessary for a company to have the board pass a resolution to the effect that it is authorising the employee with specific powers and register the same with the registrar of companies. Is this correct?
From India, Bangalore
Dear aramusk.guy
Welcome to CiteHR.com !!!
What you have heard is partially correct.
Depending on the kind and quantum of specific power to be delegated; it has to be done through either or a combination of the following :
From India, Delhi
1426Welcome to CiteHR.com !!!
What you have heard is partially correct.
Depending on the kind and quantum of specific power to be delegated; it has to be done through either or a combination of the following :
- a Board Resolution
- Power of Attorney
- Order for Delegation of Power
From India, Delhi
Thanks Raj Kumar. Can you please tell me more?
If a letter has been signed by an employee of the company without having fulfilled any of the above three methods, what happens to such a letter? Would it be legally invalid?
As for the order for delegation of power, is there any specific format that needs to be filled?
Thanks in advance
From India, Bangalore
If a letter has been signed by an employee of the company without having fulfilled any of the above three methods, what happens to such a letter? Would it be legally invalid?
As for the order for delegation of power, is there any specific format that needs to be filled?
Thanks in advance
From India, Bangalore
There is no specific format of an order for Delegation of Powers, however, it must be very clear about its intent, purpose and extent.
If a letter is signed without proper authorization or delegation, it may not be legally invalid unless the company denies it and is able to prove that it was purely in personal capacity or beyond the jurisdiction of the employee. At times there need not be a delegation of powers, but it is established by way of precedence, custom, procedure or job specification.
Unless the specific instance is known, it would be difficult to give any worthwhile suggestion.
Warm regards.
From India, Delhi
If a letter is signed without proper authorization or delegation, it may not be legally invalid unless the company denies it and is able to prove that it was purely in personal capacity or beyond the jurisdiction of the employee. At times there need not be a delegation of powers, but it is established by way of precedence, custom, procedure or job specification.
Unless the specific instance is known, it would be difficult to give any worthwhile suggestion.
Warm regards.
From India, Delhi
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