Are you in the process of appointing an authorised signatory for an agreement within your business? If so, it’s important to follow the proper procedures outlined in a board resolution.
A board resolution is a formal document that outlines the decisions made by the board of directors of a corporation or organisation. It’s typically used to document key decisions, such as appointing an authorised signatory.
In order to properly appoint an authorised signatory, a board resolution should include the following elements:
1. Identification of the authorised signatory – The resolution should identify the individual who will act as the authorised signatory for the agreement.
2. Explanation of the purpose – The resolution should explain the purpose of the appointment of an authorised signatory. This might include the specific agreement that the signatory will be responsible for, or a more general explanation of the signatory’s role within the organisation.
3. Terms and conditions – The resolution should include the terms and conditions of the appointment. This might include the signatory’s scope of authority, limitations on that authority, and any other relevant details.
4. Approval – The resolution should be approved by the board of directors, and the approval should be documented in the resolution itself.
5. Signature – The resolution should be signed by the board chairman or secretary, and the authorised signatory.
It’s important to note that a board resolution for the appointment of an authorised signatory may vary depending on the specific needs of your organisation. However, including the elements listed above can help ensure that your resolution is comprehensive and effective.
In addition to creating a board resolution, it’s also important to ensure that you have the appropriate documents in place to support the appointment of an authorised signatory. This might include a power of attorney, a contract outlining the signatory’s responsibilities, and any other relevant documents.
By following the proper procedures for appointing an authorised signatory, you can help ensure that your organisation operates smoothly and effectively. So if you’re in the process of making this appointment, be sure to take the time to create a comprehensive board resolution that outlines all of the necessary details.