Understanding Business Resolution Documents and How to Sign Them

A business resolution document is a legal document that organizations use to make significant decisions about the operations and finances of the organization. It is a record in writing of a choice made by the board of directors or shareholders of a firm. The decision is described in the document together with the justification for it and any subsequent steps that must be performed.

It is crucial that the resolution is signed by an authorized signatory before a business decides to act on the basis of it. A person who has been given the legal right to sign documents on behalf of the business is known as an authorized signatory. This person must be able to represent the business and be given the go-ahead to sign contracts.

The individual writing on behalf of a signatory must give their name and position within the organization in full. A good example might be “John Smith, CEO of XYZ Company.” Then they should write the resolution, sign it with their own name next to it, the words “on behalf of” and the company name. By way of illustration, “John Smith, CEO of XYZ Company, on behalf of XYZ Company.”

Anyone who has been given the authority to sign legal documents on the company’s behalf is considered an authorized signatory. This can apply to the company’s CEO, CFO, or any other executive or official. The bylaws of the firm may in some instances define who qualifies as an authorized signatory.

When signing documents on behalf of a business, it’s crucial to confirm that the signer has the necessary authority and that the document was signed properly. This indicates that the document must be signed in the presence of witnesses and, if necessary by law, notarized.

When signing a letter, you can “pp” it by including the words “per procurationem” or “on behalf of”. When someone is signing a letter on another person’s behalf, they frequently do this. For instance, John Smith would sign his name, “pp,” followed by the name of the company if he were signing a letter on behalf of XYZ Company. It would be more appropriate to write “John Smith, pp XYZ Company.”

In conclusion, a business resolution document is an essential legal record that summarizes significant choices a corporation has made. It is crucial to make sure the document is correctly executed and to have an authorized signatory sign the paper. It’s crucial to use the correct legal phrasing, such as “on behalf of” or “per procurationem,” when signing correspondence or legal documents on behalf of a business.