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Authorized Signatory

3 min read

Quick Summary

Authorized Signatory is a person duly empowered by the company to sign contracts, cheques, and official documents.

An Authorized Signatory is a person who has been given the authority to sign documents, contracts, and execute transactions on behalf of the company. This authority is typically granted through a Board Resolution.

Common Authorized Signatories

  • Managing Director
  • Whole-time Director
  • Company Secretary
  • CFO or authorized financial officer
  • Manager or designated officers

Authority Limits

  • Defined by Board Resolution
  • May have monetary limits
  • Specific to certain types of transactions
  • Can be joint authorization (two signatures)

Banking Authorization

Banks require Board Resolution specifying who can operate company accounts, their signing authority, and transaction limits.

Key Points

  • Person authorized to act on company behalf
  • Authority granted by Board Resolution
  • Required for banking operations
  • Can be limited to specific purposes
  • Authority can be revoked by Board