11 October 2010
What is the difference between a Power of Attorney and a resolution??
For some puopose we have been asked to provide a Power of Attorney authoprising our CS to sign and execute the documents.Will it be fine if we give thenm a resolution??
Will it make any difference if we give resolution instead of Power of Attoprney.?
12 October 2010
Giving Power of attorney (POA) and passing a board resolution (BR)to give authority infavour of a person are actions by which a particular person is authorised to do an act (or acts) intended by the person giving such an authority. To this extent they serve similar purpose. But they are not alternates to each other in the sense that :
1) POA holder actually steps into the shoes of the giver of POA, as far as the actions executed by the person holding POA. The authorised person by BR however only acts on behalf of the company.
2)Certain statutes/authority may require a POA and certain others may be just satisfied with a Board resolution.
3) A resolution can be only in the case of corporate persons (legally incorporated person) and in the case of others it will have to be POA obviously.
4) To execute a POA itself may require a Board resolution in the case of corporates.
5) Registration requirements of statutes may be there in the case of a POA and not so in the case of BR.
Accordingly in the present case, if the Compansy Secretary is given power through a Board Resolution to execute documents it will suffice.
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