Legal Question in Banking Law in India

As per the resolution passed by a company, one of the directors is empowered to execute the loan documents on behalf of the company and also to witness affixation of the common seal in the documents. The said director intends to go abroad and he wont be available at the time of documentation of the loan. Can he now by executing a power of attorney delegate the authority to sign the documents and witnesss affixation of common seal to another director or any of his other relative who is not a director. kindly advise.


Asked on 2/05/10, 12:46 am

1 Answer from Attorneys
J. Radhakrishnan independent Practice

Ask the company to pass a fresh resolution empowering some other director to sign the document and also to witness the affixture of common seal. The director who is presently authorized cannot delegate his duties by power of attorney to somebody else to sign as well as attest the affixture of common seal. The principle is one delegate= the director authorized cannot delegate his powers.

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Answered on 2/05/10, 6:27 am


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