As a business owner or board member, you may have come across the term “board resolution for authorised signatory for agreements.” This refers to the official documentation required to designate an individual or individuals as authorised signatories for your company`s contracts, agreements, and legal documents. In this article, we will discuss the importance of board resolutions for authorised signatories and the steps involved in creating one.

Why is a board resolution required for authorised signatories?

A board resolution is a formal statement that is recorded in the minutes of a company`s board meeting. It is used to document important decisions made by the board of directors, including the appointment of authorised signatories. By passing a board resolution, the company can clearly identify the individuals who have the authority to enter into contracts on behalf of the company. This provides clarity and ensures that all parties involved in a business transaction are aware of who is authorised to sign the agreement.

Steps involved in creating a board resolution for authorised signatories

Step 1: Identify the need for authorised signatories

Before you can create a board resolution for authorised signatories, you need to identify the need for them. This may involve a review of your company`s organisational structure and business operations to determine which individuals require the authority to sign contracts and agreements.

Step 2: Draft the resolution

Once you have identified the need for authorised signatories, you can start drafting the resolution. This should include the names of the individuals who will be designated as authorised signatories, the scope of their authority, and any other relevant details such as the length of the appointment.

Step 3: Schedule a board meeting

Once the resolution has been drafted, it should be presented to the board for approval. This will typically require scheduling a board meeting and distributing the resolution to board members in advance of the meeting.

Step 4: Discuss and vote on the resolution

During the board meeting, the resolution should be discussed and voted on. It is important to ensure that all board members understand the implications of the resolution and are in agreement before the vote.

Step 5: Record the resolution in the minutes

Once the resolution has been approved, it should be recorded in the minutes of the board meeting. This will provide a formal record of the decision and ensure that it is legally binding.

Conclusion

In conclusion, a board resolution for authorised signatories is a crucial document for any business that requires individuals to sign contracts and agreements on its behalf. By following the steps outlined above, you can create a clear and legally binding resolution that designates the appropriate individuals as authorised signatories. This will provide clarity and ensure that all parties involved in a business transaction are aware of who is authorised to sign the agreement.