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What is an Authorised Signatory?

What is an Authorised Signatory?

 

If you’re in business, there’s a good chance you’ve heard the term “authorised signatory” before. But what does it actually mean? An authorised signatory is someone who is authorised by a company to sign contracts and other legal documents on behalf of the company. This person has the legal authority to bind the company to agreements and make other decisions on behalf of the company. The authorised signatory is usually someone high up in the company, such as the CEO, CFO or Managing Director. They will have been given this authority by the board of directors. Having an authorised signatory is important for businesses, as it allows them to sign contracts and other legal documents without having to go through the board of directors for every single decision. This can save a lot of time and money, as well as giving the business more flexibility. If you’re not sure whether your business needs an authorised signatory, then it’s always best to speak to a lawyer or another professional for advice.

What is an Authorised Signatory?

An authorised signatory is a person who is authorised by a company to sign contracts and other documents on its behalf. This authority can be granted in a number of ways, including by board resolution or by delegating authority to an individual in the company’s articles of association.

The term authorised signatory can also refer to a person who is authorised to open and maintain bank accounts on behalf of a company. This authority is typically granted by the board of directors or the shareholders of the company.

The Different Types of Authorised Signatories

An authorised signatory is someone who has been authorised by a company or organisation to sign documents on their behalf. There are different types of authorised signatories, each with their own specific role and authority.

The most common type of authorised signatory is the managing director or CEO. They are typically responsible for signing off on major decisions and contracts. Other common types of authorised signatories include financial directors, company secretaries, and human resources managers.

Each company or organisation will have its own policies and procedures regarding who can be an authorised signatory. Typically, there will be a limit to the number of authorised signatories and they will need to be approved by the board of directors. Authorised signatories must also meet certain criteria, such as being over 18 years of age and having no bankruptcy proceedings against them.

Pros and Cons of Being an Authorised Signatory

There are both pros and cons to being an authorised signatory. On the plus side, being an authorised signatory allows you to have greater control over financial transactions and can make it easier to spot potential fraudulent activity. Additionally, authorised signatories often have a better understanding of financial regulations and can help to ensure that transactions comply with these regulations.

On the downside, being an authorised signatory also comes with responsibility. If something goes wrong with a transaction that you have signed off on, you could be held liable. Additionally, authorised signatories usually have to undergo training in order to understand financial regulations fully, which can be time-consuming and expensive.

What Responsibilities Does an Authorised Signatory Have?

An authorised signatory is an individual who has been given the authority to sign legal documents on behalf of another person or organisation. The responsibilities of an authorised signatory vary depending on the context in which they are acting, but generally they are responsible for ensuring that the documents they are signing are accurate and complete, and that they have the authority to sign them. In some cases, authorised signatories may also be responsible for verifying the identity of the person or organisation they are signing for, and for keeping records of the documents they have signed.

How to Become an Authorised Signatory

In order to become an authorised signatory, you will need to have the relevant authorisation from your company. This can either be in the form of a physical document or an electronic authorisation. Once you have this, you will need to contact the relevant financial institution and provide them with your details. They will then add you to their list of authorised signatories.

Conclusion

An authorised signatory is someone who has been given the authority to sign on behalf of another person or organisation. This means that they can legally bind the person or organisation to any contracts or agreements that they sign. Authorised signatories are usually appointed by organisations in order to give them someone who can act on their behalf in a legal and binding way. If you need someone to sign something on your behalf, make sure that they are an authorised signatory.

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