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.
5.0 (1 reviews)
Last updated October 16, 2024
Under 5 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
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.
Commercial considerations
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.
The Legal Risk Score of a Directors' Resolution for Signing Authority (Circulating Resolution) Template
Our legal team have marked this document as low risk considering:
- Even if this document is not signed effectively, the authorisation of the representative can be corrected or revoked through the implicit conduct of the directors or through passing another resolution.
- It allows the directors to restrict the authority of the representative.
- The company is able to appoint further representatives.
Directors' Resolution for Signing Authority (Circulating Resolution) Checklist
Complete your free Directors' Resolution for Signing Authority (Circulating Resolution) with our checklist
Get every director to sign this resolution
As a circulating resolution, it will only be valid with the signature of every director of the company.
Keep the document readily available
Some parties will want proof that they are dealing with the authorised party. You should have this document ready to provide to such parties.
It's never been so easy
Sign-up to a free Lawpath account
Get started and we’ll take care of you. It’s that easy.
Collaborate with e-Sign and Sharing
Having access to your legal documents has never been easier. You can request e-signature, share the document and download for an efficient collaboration.
Create unlimited legal documents and eSignatures for only $39/month.
Upgrade to a Lawpath legal plan to boost your new business.
Here's what people say about Lawpath’s Directors' Resolution for Signing Authority (Circulating Resolution)
Reviews are managed by BazaarVoice and comply with the BazaarVoice Authenticity Policy. Reviews are independently verified by BazaarVoice and detail our customers' real experiences.