28 January 2011
can any body reply urgently to my following query
when board of director authorise employee of the compa ny to sign any particular agreement under such case can managing director himself can excute the same.
Managin director derives inherent power from MOA.whether his act is invalid as board has not authorised
28 January 2011
The substantial powers in relation to the management of the affairs of the Company vested with the Managing Director is subject to the general superintendence, supervision and direction of the Board of Directors.
Now, if the Board of Directors has expressly by means of a resolution authorised an employee of the Company to execute an agreement for and on behalf of the Company, then only he is authorised to do the same and Managing Director cant execute the agreement on behalf of the Company if not authorised by the Board.
CAclubindia
