A board signatory is a person who is responsible for signing agreements and contracts on behalf of a business. These individuals are given authority by a formal process, either in the founding documents of the company or through the resolution of the board. The resolution or document defines the extent of their authority as well as how it is restricted. This provides clarity internally within the organization and externally with business partners regarding who has the legal power to bind the company to agreements.

The term “board signatory” is used to refer to a specific person who is responsible for approving major expenditures and key decisions for an organization, like purchasing new office equipment or setting up contracts with suppliers. They could be also charged with negotiating better pricing or https://creativetrance.com/why-data-security-should-be-a-priority-in-virtual-data-rooms/ terms on the procurement side, and they are likely to be able to review and modify to contractual agreements as well.

To get the most effective results, companies that confer such authority should look at their internal procedures, and then communicate them to authorized signatories so they have a clear understanding of the organization’s goals and objectives. This information helps them make informed decisions regarding how they exercise their authority, and reduces the possibility of unintended or contradictory actions. For example, it’s common for companies to use dual permission or approval procedures to limit the potential for misuse. This is done by ensuring that at minimum two people scrutinize and approve the activities before they occur.