Can a shareholder sign documents on behalf of the company?

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Parin (Querist)
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04 February 2011 Is a shareholder authorised to sign cheques on behalf of the company?
In case no, can the shareholder be authorised by a power of attorney to sign the same?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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04 February 2011 If power given by the board then he can otherwise not.

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Parin

Parin (Querist)
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05 February 2011 That means, by passing a board resolution the shareholder can sign the cheque books on behalf of the company.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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05 February 2011 While opening a bank account the person should be authorised to sign. If authorised at that time then only he can sign.

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Parin

Parin (Querist)
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05 February 2011 Oh.. Well in our case the shareholder was not authorised at the time of opening the bank account. So we want to authorize the shareholder by passing the board resolution. Is it valid?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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05 February 2011 No the bankers will not accept it. So u will have to first change the details in bank account then only the cheque can be passed by the bankers.

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