Board minutes authorising signature of a company document

Use these minutes during a board meeting to approve a particular contract or agreement and authorise a specified person to sign it on behalf of your company. By using these template minutes to authorise signature of a company document, you make sure the proper process is followed and that all the necessary people agree on who is authorised to sign what documents. Note that it may not be practical to approve all agreements individually like this – it is possible to delegate power to sign documents on behalf of your company more informally, eg by including it as a term in an individual’s employment contract.
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Sole director resolution authorising signature of a company document

If your company has only one director, use this template resolution to authorise signature of a company document. By using this template resolution, you ensure that you follow the correct legal process to authorise certain people to sign documents. This reduces the risk of legal disputes later on, and ensures that everyone is comfortable with who is authorised to sign company documents. Legally, the person chosen to sign documents on behalf of your company does not have to be its sole director, but you may find that people dealing with your company expect it for important matters.
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Signing documents on behalf of a company
Who can sign documents for a company
Q1:Who can sign documents for my company?

Generally speaking, this will depend on whether the document is a or another type of document:

  1. for the difference between the two, see Q&A 4;

  2. for most documents other than , see Q&A 7; and

  3. if the document is a , see Q&A 8.


Q2:Does an agreement have to be signed?

No, with exceptions for specific types of agreement (such as and which must be in writing and in a particular way).

Most agreements do not have to be signed and if straightforward an exchange of emails can be enough to amount to something which is legally binding between two or more parties.

However, for anything other than a straightforward agreement, it is suggested that a physical signing is preferable in helping to make everyone think about what they are agreeing to before they sign rather than when it may be too late.


Q3:Does an agreement have to be in writing?

No.

With exceptions (principally and , see Q&A 2), for most types of contract it is possible for individuals to enter into legally binding agreements on behalf of your orally, without the need to to reduce them to writing. However, it is strongly recommended to record any agreement in writing to ensure that everyone is clear about what is agreed and to avoid dispute in the future.


Difference between deeds and other documents
Q4:What is the difference between a deed and other documents?

A is a formal document which:

  1. must be in writing;

  2. is legally required for certain matters such as the transfer of land and the grant of a (see Q&A 5); and

  3. must be in a particular way to be valid (see Q&A 8).


Q5:When does my company need to sign a document as a deed?

are required by law for serious matters such as:

  1. the transfer of land; and

  2. where a authorises someone as its attorney to a on its behalf (called a , see Q&A 11).


Deciding who signs company documents
Q6:Who decides which person can sign documents to be entered into by my company?

This will usually, although not always, be your although there may be specific requirements if you have entered into a .

You should first check your 's , and if you have one .

If your has the :

  1. for most documents other than , your will have authority to decide who should sign a document (see Q&A 7);

  2. for , your will have to follow the strict requirements on how your must these to be valid (see Q&A 8);

  3. your can delegate any of its powers by , meaning that:

    1. it can authorise anyone, not just a , to sign most documents on behalf of your other than ;

    2. it can authorise anyone under , which itself must be as a , to sign ;

    3. it can authorise someone else to decide who signs a document on behalf of your ; and

  4. if you have a , you may also need the prior approval of one or more and there may be restrictions on who can sign particular documents.

In practice, other parties you are dealing with may expect a to sign, usually to give them confidence that a document has been properly approved, even if there is no strict need for this to happen.

You can use one of the following template board to authorise signature of a document, which is not a , by an individual on behalf of your :

  1. for minutes of a , you can use Board minutes authorising signature of a company document;

  2. for a , you can use Written board resolution authorising signature of a company document. Note this will only be passed once it is signed by all your ; and

  3. if your has only one , you can use Sole director resolution authorising signature of a company document.

See Board and shareholder decisions for more guidance on how to go about making decisions.

You do not have to delegate power by . It is possible to authorise people to sign documents on behalf of your less formally, for example in the terms of the individual's contract of appointment or employment.

It is possible for a person to have authority to sign for your implied from their role within your and the circumstances in which they are signing. However, it is better to expressly authorise people if practicable so that there can be no room for doubt or dispute as to what they can and cannot do.

For the consequences and your options if someone has signed a document for your without proper authorisation, see Q&A 17 and following.


How to sign different types of document for a company
Q7:How do I sign documents on behalf of my company other than deeds?

See Q&A 4 and Q&A 5 for the difference between and other documents.

It is reasonably straightforward to sign most types of document for your (see Q&A 8):

  1. There is no legal requirement to have your signature witnessed;

  2. There is no legal requirement that more than one person has to sign on behalf of your

  3. There is no legal requirement that all parties to a contract sign the same document; you can each sign and exchange a (see Q&A 10).

  4. It is good practice for any signatory to specify the capacity in which they sign, although not essential.

  5. You can sign the contract electronically if you wish. An electronic signature is broadly defined and can include using a scanned version of your handwritten signature, typing your name in the relevant place or a more complex and secure use of a web-based e-signature platform.

  6. It is suggested that you date the document although this is not strictly necessary. Any date you insert should be the date of signing.

    Backdating a legal document can mislead other people about the date from which your document was actually effective and can potentially constitute a criminal offence. If you want an agreement to take effect from an earlier date than you are signing it, it is much safer to include provision in its terms to say so.

Note that, if you wish, there is no problem with signing a straightforward contract in a more formal manner than legally required.

For how to a written contract that is a , see Q&A 8. For when your needs to a document as a , see Q&A 5.


Q8:How do I execute deeds for my company?

If a document is a , it must meet certain strict requirements beyond a simple signature in order to be legally binding (also known as of the ). See Q&A 5 as to when a document must be as a .

The two most common ways in which your can validly a are:

  1. The signature of either (i) two , or (ii) one and your (if you have one)

    If the requires a date with the signatures, you must ensure that the date of signing is given. Backdating a can mislead others about when it became effective and can potentially constitute a criminal offence such as the giving of false statements by . If you want an agreement to take effect from an earlier date than you are signing it, it is much safer to include provision in its terms to say so.

    It is generally accepted practice that such a signature can be an electronic signature, eg a scanned version of the signature page that you have printed and signed.

    There are limited exceptions which require a handwritten signature on a hard copy. The most common are:

    1. a stock transfer form that requires stamping by ; and

    2. any transfer, lease, or charge requiring filing at the or Land Charges Registry.

  2. The signature of a in the presence of a witness who attests the signature

    For details of who can be a witness and how they attest a signature, see Q&A 14.

    As with (a) above, the can usually be signed electronically and if it requires a date with the signatures, you must ensure that the date of signing is given to avoid the risk of committing a criminal offence.

If unusually (especially if your was set up in the last few years) your has a seal, see Q&A 9.

You can also authorise someone to a under and another way of signing the may also be available. Executing a this way is not covered here; if you plan to do so you should get expert legal advice. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.

Your can choose which one of the above methods to use.


Q9:How can I execute a deed using my company seal?

This is a lot more unusual than using signatures.

Your is not required to have a seal and if you have one you are not required to use it.

If, unusually, you have one, it must be legibly engraved with your name. (If it is not, your and any responsible commits an offence, punishable by a fine).

Before using your seal, check your for any provisions about how you must use it. For example, if you have the :

  1. you can only use your 's common seal with the authority of your (who can decide how the seal is used); and

  2. unless the decide otherwise, any document which uses the seal must also be signed by at least one , or other person who the has authorised, in the presence of a witness who must also sign.

For the consequences of failing to a properly, see Q&A 20.


Q10:Can a contract or deed be signed by different individuals in separate counterparts?

Yes. If a document requires signature by multiple people, it is not generally necessary for all of them to sign the same physical document. In most cases, it is possible for a document to be signed in . This simply means that each signatory has signed their own copy of the final document. This approach is commonly used on corporate transactions or agreements where the signatories are in multiple different physical locations.

If signing a document in , it is important to ensure that each is completely identical in form, to avoid any disputes about the terms of the document in question. The practice of signing separate signature pages before the final version of the agreement has been produced in not recommended and may result in the document being invalid.

Note that, if there is more than one person to sign for each party (eg if you are executing a by having two sign it), they should sign the same copy.


Q11:How does my company execute a power of attorney?

A has a particular form. You cannot grant it informally, eg by letter, as it will not be legally effective; it must be as a .

Any document which contains a should also be as a for the to be valid.

If you are planning to a , it is suggested you get expert legal advice. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.


Q12:How does my company execute a guarantee?

If your enters into a , it will agree to be responsible for an obligation of someone else to a .

To be legally valid, a given by your must be:

  1. either in writing or evidenced by a written note or memorandum; and

  2. signed by your .


Witnessing of signatures
Q13:When do I need to have a signature witnessed on my company's agreements?

A witness to the signing of a legal document for your will only be required by law where only one of your signs a (see Q&A 8).

You may also have internal procedures requiring signatures to be attested in other situations, such as if your stipulate an additional, witnessed, signature in the event that you use your 's common seal (the require this).

There is no problem with you having signatures witnessed in circumstances where it is not legally required.

For guidance on how to have a signature witnessed, see Q&A 14.


Q14:How do I have a signature witnessed on company contracts or deeds?

Anyone can witness a signature, apart from one of the signatories to the document itself or anyone who will chiefly benefit from it.

EXAMPLE: if one of your is signing a , a second of your can attest their signature.

It is also common for solicitors, accountants or other advisers to witness signatures, but there is no legal reason why you cannot have any friend, family member or do so. It is best to choose someone who you will not lose track of in future and will make a credible and reliable witness should the need arise.

The proper process is:

  1. the witness must be present when the person or people whose signatures they are attesting sign the document; and

  2. the witness must actually see them sign.

Additionally, you may wish to require the witness to give details of their address and occupation to ensure that they are easier to find in future if there is an issue. This is not legally required, but is good practice.

If you do not follow the proper process for witnessing a signature on a , the will not be properly and may not be valid.


Changes to company documents
Q15:Can I alter a company document before signing it?

Yes.

If the alterations are agreed with the other parties to the document, you will not affect its validity by hand amending it before you sign, although it is good practice to amend a typed document properly and reprint with your changes if practicable before signing.

If it is not convenient to amend and reprint, ensure that any hand amendments are initialled by all parties so there can be no doubt later on.


Q16:Can I alter a company document after signing it?

This will depend on the terms of the document you have signed, the nature of the change you are making and whether or not it is a .

For most types of document other than , altering the terms will involve notifying the other party of any proposed change and confirming their consent in writing. This will also depend on the terms of the document, which you should review carefully before doing anything else.There will usually be a which sets out how any changes to the terms should be agreed. You should ensure you follow this to make any alterations to the document.

For a , as a general rule another will be required to make any alteration to the agreed terms. The precise mechanism for amending a will depend on the terms of the original document. You should review the terms of the and, if in any doubt, seek separate legal advice. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.


Dealing with incorrectly signed documents
Q17:Is a document still valid if not properly signed or executed on behalf of my company?

This depends on whether or not the document is a .

If the document is a , it may be invalid and of no effect; see Q&A 21. If the document is not a , see Q&A 20.

If someone who is not properly authorised has signed documents on your 's behalf, your can still be bound by them.

Broadly, if the unauthorised signatory was presented by your as someone who could sign a document on its behalf, and the other parties involved relied on that, the unauthorised person's signature will bind your .

EXAMPLE: if you allow a person to use a business card giving them status as a part of your business, you will be bound by anything they sign within the usual scope of that role, even if you have not properly authorised them to do so.


Q18:Do I have to include my company's name when I sign a document on its behalf?

It is best to include your 's name to make it clear. If you have not, it will depend on the circumstances as to whether what you signed is binding on you personally or your .

See Q&A 19 for when your will be bound by a document even though the signatory does not include the name.


Q19:Can my company be bound by a document that is not signed in its name?

It can be – it will depend on the circumstances.

Generally, if it has been made clear that the person signing is authorised and acting on behalf of your throughout any negotiations, your is likely to be bound by it (even if the contract is not explicitly signed 'for and on behalf of' your ). Remember that your can be bound even if the person signing was not actually authorised, if you have presented them to the other parties to the contract as having authority to do so.

If the signatory does nothing to suggest they act on behalf of your and the contract makes no reference to the or its name, it is unlikely that your will be bound by it.

This can be a complex and technical area of law, and the validity of any signature on a contract will turn on the specific facts. If you have concerns regarding whether a contract is binding, you can use our Ask a Lawyer service for access to expert legal advice in a few simple steps.


Q20:What happens if a document which is not a deed has not been properly signed or executed?

For most documents, no particular legal formalities are required for you to enter into them.

  1. Unauthorised signature

    If someone who is not properly authorised has signed a document on your 's behalf, your can still be bound by it. Broadly, if the unauthorised signatory was presented by your as someone who could sign a document on its behalf, and the other parties involved relied on that, the unauthorised person's signature will bind your .

    EXAMPLE: if you allow a person to use a business card giving them status as a part of your business, you will be bound by anything they sign within the usual scope of that role, even if you have not properly authorised them to do so.

  2. Not signed

    Even if a document has a place for a signature but has not been signed on behalf of your , it could still be binding if, for example, everyone has simply proceeded to as if they are bound by the document.


Q21:What happens if a deed has not been properly executed?

If a is not properly (for example, if you do not have the relevant signatures witnessed), it can render the invalid. Although note that you will not necessarily be able to rely on your own failure to do things properly in order to get out a if it was not obvious to the other parties that there had been a problem.

are more complex than other documents and legal advice is sensible if you are concerned that you may not be bound by one due to problems with its . For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service. It is not necessarily always best to re- the correctly as the date it takes effect can be legally important.

You cannot re- the correctly and backdate it to correct a date in signing. By doing so, you may mislead others as to the date the actually became effective, which can constitute a criminal offence.