Signing authority for execution of sale deed
queryforme
(Querist) 27 April 2011
This query is : Resolved
Dear sir
I am planning to purchase a land from Company ‘C’. Company ‘C’ has one Managing director ‘A’ and one director ‘B’. Currently the land is registered in name Company ‘C’ and signed and purchased by ‘A’.
Now, Company ‘C’ provided signing authority to ‘X’ by passing board resolution. Here ‘X’ is some third person (not a board member). The board resolution is signed only by managing director ‘A’ for providing signing authority to ‘X’ to execute a sale deed.
Did board resolution signed only by the managing director ‘A’ is sufficient to provide signing authority to third person who is not a member of that company?
They provided only the Xerox copy of the board resolution (not original) in company letter pad with company seal and signed by managing director ‘A’ (not by director ‘B’). Is it valid legal document to accept person ‘X’ as signing authority to execute a sale deed?
Kindly provide your recommendation.
adv. rajeev ( rajoo )
(Expert) 27 April 2011
When there is a resolution to authorise the X as signing authority and copy of the resolution signed by the MD is valid.
Kirti Kar Tripathi
(Expert) 27 April 2011
Yes, I agree with Mr. Rajoo. the copy of resolution singed by A is valid.
queryforme
(Querist) 28 April 2011
Thanks Mr. Rajoo and Mr. Tripathi
Advocate. Arunagiri
(Expert) 28 April 2011
The company can authorise any body, by a board resolution, to execute the sale deed. The original board resolution has to be produced along with the sale deed.
queryforme
(Querist) 29 April 2011
Sir, thanks for your valuable comments. I hereby attached the content of board resolution given to me. Kindly confirm the correctness of the content. Is it ok to go with this board resolution?
queryforme
(Querist) 02 May 2011
can anyone please confirm the correctness the resolution? I am waiting for experts reply.
queryforme
(Querist) 02 May 2011
Thank you Sir... :-)
Guest
(Expert) 02 May 2011
Dear Suresh,
Sorry to difer with the views of the experts, as the language of the Resolution is doubtful, e.g., the Board BE hereby approved" and the Board BE hereby authorise," which conveys as if the resolution seeks authorisation FOR the Board not BY the Board the draft sales deed. So, in both the paragraphs the verb used "BE APPROVED" and "BE APPROVE" are doubtful.
In fact the language should have been "The Board hereby approves" in both the paragraphs of the Board.
Needless to mention that a verb wrongly used in a sentence can change the sense and validity of any document. Mre one word "BE" used in the resolution has changed the sense and spirit of the resolution.
Since the company is a plot and housing company, the doubt becomes more prominent, as at some later stage, to reclaim the plot, the company may not treat the authorised person to sell the plot with the plea that the Board Resolution was just to seek authorisation in favour of the Board. by some other authority, say any local authority.
Mr. Arunagiri and other experts may also like to review the language of the Board Resolution to provide their valuable opinion on my doubt.
