Authorisation for signing a contract?

[Fred Bloggs]

Just a quick question, Mrs B used to sign the contracts for our Ltd Co, but she is no longer a director. She is still the Co Secretary, can she sign still a contract for the Ltd Co? Thanks.

[SueEllen]

Depends.

Some agencies and companies will require a director to sign paperwork, others don't care who the company representative is.

They will generally indicate on the paperwork by the word "Director" if they expect it to be signed by one of the company's directors.

[Fred Bloggs]

Thanks, it just says, "signed on behalf of". So it'll be fine for Mrs B to sign, it seems.

[SueEllen]

BTW it's a good idea to work out what you authorise you Company Secretary or whoever to sign for on your Company's behalf and record it in some minutes. Then also make sure they know exactly what they can and can't sign for.

I worked at a bank years ago and convinced the head of department to go through all the signatures of company signatories to check who had authorisation to sign things as there was an issue with signatures changing and people leaving.

Even after this there were many small companies where signatories who weren't authorised to sign for things any more kept signing documents. Some of them weren't aware they weren't authorised to sign the bank paperwork on behalf of their company until one of my colleagues told them......

[Wanderer]

Just a quick question, Mrs B used to sign the contracts for our Ltd Co, but she is no longer a director. She is still the Co Secretary, can she sign still a contract for the Ltd Co? Thanks.

Maybe it's a dumb question but can you tell us how come don't you sign it yourself? I mean, you can't be doing that many contracts that it's such a chore.

[Fred Bloggs]

Yes, it's a dumb question. I'm in London where I work and the contract is in Manchester where I live. Plus, I like Mrs B to be as involved in the running of the Ltd Co as possible because it just makes sense to do so.

[Wanderer]

Yes, it's a dumb question. I'm in London where I work and the contract is in Manchester where I live.

Oh. A paper contract that gets sent via the post. How quaint.

Fair enough about involving the wife though, it's a good way to justify their salary I'll keep that one in mind.

[Fred Bloggs]

Oh. A paper contract that gets sent via the post. How quaint.

Fair enough about involving the wife though, it's a good way to justify their salary I'll keep that one in mind.

Exactly, I make sure all correspondence for the Ltd Co goes out in her name where possible. We do have post in the grim North, we've moved on from carrier pigeons.

[Scrag Meister]

Yes, it's a dumb question. I'm in London where I work and the contract is in Manchester where I live. Plus, I like Mrs B to be as involved in the running of the Ltd Co as possible because I pay her so much each year in salary to avoid taxation.

FTFY :-)

[Tanya@SC Lee Accountant Ltd]

It is possible depends on how important the contract is

Just a quick question, Mrs B used to sign the contracts for our Ltd Co, but she is no longer a director. She is still the Co Secretary, can she sign still a contract for the Ltd Co? Thanks.