Validity of Document/Agreement - Signatory
Urvashi Saumya
(Querist) 16 June 2009
This query is : Resolved
What is the validity of any document/agreement which has been signed by signatory of the company or any concerned person once they leave that company?
Does this affect the validity of the document/ agreement in any ways?
Mahesh
(Expert) 16 June 2009
All the documents signed by the employee, if he is duly authorised by a Board Resolution, is valid even after he leaves the company.
Manish Singh
(Expert) 17 June 2009
all the opinions are noteworthy but it must be added that a person must be duly authorisd by any legal entity to bind the entity in its entirety. here also the company shall be bound by the siganture of the employee if a resolution has been passed to authorised him.
but for the documentation purposes you always need a duly issued power of attorney in favour of the person by the compnay along with a borad resolution in this effect.
Uma parameswaran
(Expert) 17 June 2009
The validity of any document /agreement which has been signed by signatory of the Company or any concerned person remain same as early.
A. A. JOSE
(Expert) 17 June 2009
I would only add further that if the the employee had signed the document for and on behalf of the company during his service, the company would be bound by his actions.
Manish Singh
(Expert) 17 June 2009
but it must be kept in mind that if the employee without having any authority has signed the document, the compsny can not be held liable for the same and the said employee shall be made personally liable in this regard.
the companies act put the burden, to be careful before signing any contract with a company, on the other party. the other party must be catious to enquire whether the person with whom he is signing a contract is duly authorised or not.
