You may want to do this, for example, where you've appointed co-directors and it makes sense for you each to have the power to make contracts on behalf of the company.
Equally, there may be some decisions that you wish to delegate to other members of your team, where you set defined boundaries around what can be signed off.
It's important to be clear on who may commit your business to contractual or financial obligations especially. So ensuring that there is a record of who is authorised to do what, and how that authority has been granted, or may be revoked (and in what circumstances), matters.
Proposing the signing authority for one or more named individuals.
2. A cross check on the articles of association
To ensure that the board has the power to grant this power to other staff members without needing, for example, shareholder consent or revisions to the board's current authorities.
Recording the outcome of the decision and details of any agreed signing authority/ies.
4. A completed bank mandate and the bank's agreement to permit another member of staff this power
If relevant (because the individual will have financial powers, including the ability to draw on funds in the company's bank account.
The bank must agree. The directors will not have full control over this decision. For most businesses, it is, however, more a formality than an issue.
(See more background to this in the 'recommended order of steps' section immediately below.)
5. Draft letter to the authorised signatory/ies ready to inform them of the extent of their signing authority/ies
This can be sent as you prefer, but it should be kept on file with all other official company matters.
Recommended order of steps
If you follow the steps set out above, and ensure that if banking powers are to be included, you've formalised that mandate with your bank, then you should be in good shape to confirm to your authorised signatory that they can start signing on your behalf.
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