I want to authorize some of My employees and others (who are not employees of the company) to sign some excise related docs on behalf of company.
Authority to the outsiders
Amisha (Asst. Company Secretary) (205 Points)
25 June 2010Amisha (Asst. Company Secretary) (205 Points)
25 June 2010I want to authorize some of My employees and others (who are not employees of the company) to sign some excise related docs on behalf of company.
Nitin Grover
(CS)
(1228 Points)
Replied 25 June 2010
Dear Amisha
Yes he can do so but in resolution it must be shown that Mr X is being authorised and to authorised some another person on his/ behalf of company for this act.
thats you have shown already in Resolution.
Its legal and you can affix stamp of Director on it.
in my views no need of common seal
Regards
Yogesh Bhatt
(Company Secretary)
(475 Points)
Replied 25 June 2010
Dear Amisha,
AS per my opinion Director can not delegete his power only board can delegate power to any director or commitee of Board. :
First Read This:
Section 291 of Companies Act, 1956 provides for general powers of the Board of directors. It mandates that the Board is entitled to exercise all such powers and do all such acts and things, subject to the provisions of the Companies Act, as the company is authorized to exercise and do.
However, the Board shall not exercise any power and do any act or things which is required whether by the Act or by the memorandum or articles of the company or otherwise to be exercised or done by the company in general meeting.
Power of the individual directors - Unless the Act or the articles otherwise provide, the decisions of the Board are required to be the majority decisions only. Individual directors do not have any general powers.
So . If u analysis Above sentence in red mark it says that Director can do whatever company do. here not mention anything abt outsider.
Nitin Grover
(CS)
(1228 Points)
Replied 25 June 2010
Dear Yogesh
Pls solve this problem
1. Comapny Name ABC P.Ltd need Form C - 5 nos then Will Director go for it in Sales Tax - Ans is No he authorise another person
2. Same Company need to file petition u/s 141 then also they authorise the person not even an employee of the company
so they can authorise
Regards
Amisha
(Asst. Company Secretary)
(205 Points)
Replied 25 June 2010
Thanks yogesg and nitin
but now the question come that the directors who is authorised by the Board can individually authorise outsider or the same has to be done by the consent of the Board.
Best regards,
Yogesh Bhatt
(Company Secretary)
(475 Points)
Replied 25 June 2010
Dear Nitin,
Both Case 1 and Case 2 are diffrent.
see. 1 st case.. u r right and in that case u can Pass board resolution Means all board consent to authorise one employee for routine work like for bank, s.tax, income tax. etc. and as far as conscern
to purchase S.tax form it is available in market also and to purchase ther is not any legal liability is attached with this activity.
and
in second case to file petition ther is legal liabilty is attached. they can not authorised any person to sign petition they can authorise any representive to appear before authority but they can't delegate such power to outsider . bcoz is ousider is ready to bear any liabilty of order .no ther is not possible.
and pls read section i put in my earlier forum.. u will definitely get idea.. and pls intermingle two case which u ask me bcoz both are diff..in first case no sence to give athority.
anuthoty can give by only board not by any individual director.
u can ask me futher if u can't get it.
Yogesh Bhatt
(Company Secretary)
(475 Points)
Replied 25 June 2010
Hi, dear Amish u got my point ? or wait for other 's reply.
Amisha
(Asst. Company Secretary)
(205 Points)
Replied 25 June 2010
dear yogesh
yes i got it. thank you so much.
Beat regards,
Yogesh Bhatt
(Company Secretary)
(475 Points)
Replied 25 June 2010
i m attaching here one article pls down load it.
Yogesh Bhatt
(Company Secretary)
(475 Points)
Replied 25 June 2010
i m attaching here one article pls down load it.
Amisha
(Asst. Company Secretary)
(205 Points)
Replied 25 June 2010
Thanks yogesh. thanks a lot dear.
Best Regards,
Nitin Grover
(CS)
(1228 Points)
Replied 25 June 2010
Dear Yogesh
Petition can be signed also just like ITR and other legal forms
Dear Amisha
Director can do only that act for which he is authorised
If Director is auth by Board for delegating his power then he can do so
If he does not authorize then Director can not delegate his power on his behalf
Regards
Yogesh Bhatt
(Company Secretary)
(475 Points)
Replied 26 June 2010
Dear Nitin,
Can u pls send me some resolution where board has pass resolution to give atuthority to director and same he can delegate to others.
i.e board has pass resolution to give authority to director for day to day affairs of company and
same authority he has give to his wife to sign cheque, petition of , or any instrument or document of company, where she is not part of company , she is just outsider for company.
Pls explain me.
Amisha
(Asst. Company Secretary)
(205 Points)
Replied 28 June 2010
Dear Yogesh & Nitin
Few more queries
Nitin Grover
(CS)
(1228 Points)
Replied 28 June 2010
Dear Amisha
I have said you the same thing Director have authority to delegate his power
For an eg Mr. Ratan Naval Tata is a director is 9 companies and all are VIPs are directors in these companies. but they dont sign chq's etc they delegate the powers to others.
its a diff conditions which power can be delgate to employees and which can also for other then empl.
1. Stamp of Director is also sufficient ( no need for common seal) or affix both
2. In second situation i also dont think so to give POA to director except where any govt authority needed like VAT Authority demand for it (its execptional cases) other no need to give POA to director from Board only BR is sufficient.
Director is authorize can sub delegate the power by general POA or by Special POA.
Regards
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