29 March 2010
We are in the process of incorporation of a private limited company. Company name has been approved by RoC. Now directors want to execute leave and license agreement immediately for work area of company. So before incorporation, in whose name is the deed to be executed? Company or promoter director or all the promoter directors?
If the deed is to be executed for the purposes of the company then it can only be executed on incorporation of the company as the promoters/directors cant execute it on behalf of the company before its incorporation and it would also lead to personal liability on part of the promoters/directors. I would suggest that the deed be executed by the Directors of the Company duly authorised by a board resolution on the incorporation of the company.
CAclubindia
