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Discussion > Corporate Law > Pvt ltd >

Authorised signatory

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Account Manager


[ Scorecard : 47]
Posted On 01 March 2011 at 16:51 Report Abuse

Can an outsider,who is neither a employee nor Director nor professional consultant of a company, be a authorised signatory of  share certificate of the company? Can Auditor of the company, be such authorise signatory?


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Shridhi Jain
Company Secretary


[ Scorecard : 1659]
Posted On 01 March 2011 at 17:39

 

 

Sealing and Signing of Certificate.-  

 Every share certificate shall be issued under the seal of the company, which shall be 

affixed in the presence of   

(i)   two directors or persons acting on behalf of the directors under a duly registered 

power-of-attorney ; and   

(ii)   the secretary or some other person appointed by the Board for the purpose. The 

two directors or their attorneys and the secretary or other person shall sign the 

share certificate.  

Provided that, if the composition of the Board permits of it, at least one of the 

aforesaid two directors shall be a person other than a managing or whole-time 

director.  





SANTOSH SHAH
Company Secretary


[ Scorecard : 749]
Posted On 01 March 2011 at 17:43

Originally posted by : Aditya

Can an outsider,who is neither a employee nor Director nor professional consultant of a company, be a authorised signatory of  share certificate of the company? Can Auditor of the company, be such authorise signatory?

 Hello Mr.Aditya,

In my opinion, yes, an outsider i.e, auditor in this case can act as  an authorized signatory if board passes resolution to that effect. An authorization from Board to outsider as Authorized signatory should do.

 However it is always advisable to get it signed by Directors and a person associated with the company.

A share certificate is basically representing the company and thereby signatures of persons associated with the Company acting as Authorized Signatory  along with 2 Directors and Common Seal will be a good practice.

 

Other views appreciated.

 

regards

 

Santosh Shah.




Jaideep
Service


[ Scorecard : 1344]
Posted On 01 March 2011 at 18:33

Originally posted by : SANTOSH SHAH



In my opinion, yes, an outsider i.e, auditor in this case can act as  an authorized signatory if board passes resolution to that effect. An authorization from Board to outsider as Authorized signatory should do.

 However it is always advisable to get it signed by Directors and a person associated with the company.

A share certificate is basically representing the company and thereby signatures of persons associated with the Company acting as Authorized Signatory  along with 2 Directors and Common Seal will be a good practice.

 



Vikash Kharvar
CA-IPCC Student as well as Asst. Manager- F&A


[ Scorecard : 464]
Posted On 02 March 2011 at 12:01

Yes,

 

A Auditor of the Company, may be authorised signatory for the Sahre Certificate of the Company.

But for the same Power of Attorney should be granted by Directors of the Company on behalf of that Auditor.




Pothuganty sudheer
Consultant, C.A, C.S


[ Scorecard : 411]
Posted On 02 March 2011 at 13:02

I agree with Santhosh,Jaideep and Vikas view. Good corporate practice demands the signature of directors on

Share certificate as they are the representing Company. However, persons other than directors can also be

authorised signatories on Share certificate on the strength of power of attorney  or on the appointment by Board

to that effect by means of Board resolution.

Expert opinions are welcome and highly appreciated,

Best regards,




Jayashree S Iyer
Company Secretary


[ Scorecard : 3109]
Posted On 03 March 2011 at 15:22

As per Companies (Issue of Share Certificates) Rules, 1960 the share certificate shall be signed by

1) 2 directors or persons acting on behalf of directors under a duly registered Power of Attorney; and

2) Secretary or some other person appointed by the Board for that purpose.

 

So if persons other than directors are to sign the share certificate registered POA is required. It cannot be done on the basis of Board resolution alone.

 

Other experts veiws are solicited.



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