Asst. Company Secretary
205 Points
Joined February 2009
Dear Yogesh & Nitin
Few more queries
Its True that Director dont have any power individually and Board as a whole has a power to act on behalf of Company.
My situation is bit different:
My Board consist of Five Directors and they all have taken a Decision in Board Meeting that Mr.X Director of the Company be authorised to do so and so act.
Also he is further authorised to do delegate the above powers to any person as he may deem necessary.
So here My Board is taking the decision on behalf of the company (which has the power to act on behalf of the company) to delegate the power to director and further sub delegate that power to any person he may deem fit.
If still it is not digestable to you then think it in this way...
There are many documents Like cheques, invioces, letters, income tax related papers, excise related papers and what not.
My Directors cant be present everywhere and cant even sign all the papers at a go.
Its not practical to sign that many papers by a single person. He authorize others to carry out that work on behalf of the company by passing a Board Resolution. You mignt have seen a resolution where you authorize CEO, COO CFO , CS who are not Directors but are authorized signatories.
As per my view and discussions i had with my friends and seniors that any employee of the Company can be authorized by Board Resolution and any person who is not employee of the company can be authorized to act by giving him a POA in his favour.
Now some more questions arise after this:
1. Whether the Power of Attorney given by the Director need to be sealed i.e. affix common seal. as it is given by Director and not by company
2. That some one told me that First General POA need to be given to Director and then Director can give to other. My question is why cant a Board resolution be accepted which clearly says that power is given to Director.
Best regards,