Directors' Resolution for Signing Authority (Circulating Resolution)This Directors' Resolution grants authority to an individual to enter agreements and sign documents on behalf of a company.
Companies are able to grant authority to agents or representatives to enter agreements and sign documents on their behalf. This grant does not require a deed or a seal; it only requires "implied or explicit authorisation". A directors' resolution is an effective way of explicitly granting this authorisation, as the directors are able to exercise the authority of the company at a meeting. However, users should ensure that any methods of authorisation are in accordance with the company's constitution.
The document allows users to limit this power to the scope of certain matters or transactions, or to be exercised within a certain period of time.
A significant purpose of agency laws is the protection of parties contracting with the company. Such parties will generally want a level of certainty that the company is bound to perform certain obligations before they begin to perform their obligations. For this reason, parties may ask for proof of authorisation such as the minutes of the directors' meeting where such a resolution is passed.
This resolution can be inserted into:
Where you wish to pass the resolution in a directors' meeting, you must use the documents above. Simply copy and paste the text of the resolution.