Authorized Signatory
An Authorized Signatory is a person or entity that has been granted the legal authority to sign documents, make decisions, and enter into agreements on behalf of an organization or account holder.
- AKA: Authorized Signer.
- Context :
- It can be designated by a company's board of directors or based on an employee's role within the organization.
- It can have varying levels of authority, from signing specific types of documents to having full decision-making power.
- It can be required for financial transactions, legal contracts, and official company documentation.
- It can be multiple individuals in some cases, requiring joint signatures for certain actions.
- It can be formalized through a Signature Authorization Form or a Signature Authority Matrix.
- It can have different roles and permissions depending on the industry and specific needs of the organization.
- ...
- Example(s):
- Company Directors, who can sign and execute business contracts on behalf of the company.
- Bank Account Signatorys, who can manage and operate bank accounts on behalf of the account holder.
- Chief Financial Officers of banks, who sign off on annual financial statements.
- ...
- Counter-Example(s):
- Regular Employees, who typically lack the authority to sign official documents or make binding decisions on behalf of the company.
- External Consultants, who may provide advice but cannot legally bind the organization unless explicitly authorized.
- See: Signatory Authority, Power of Attorney, Corporate Governance, Legal Representation, Delegation of Authority, Proxy Representation.
References
2024a
- (ChatGPT-OpenAI, 2024) ⇒ Prompt: Summarize the concept Authorized Signatory in 1- 2 paragraphs. ChatGPT (model:gpt-4o). Retrieved: 2024-12-08.
- QUOTE: An authorized signatory is an individual who has been granted the formal authority to sign official documents on behalf of an organization, business, or legal entity. This authority is typically given through a formal process that might involve the signing of a board resolution, a power of attorney, or specific authorization in the by-laws or operational policies of the entity. The scope and limitations of their authority can vary: they might be empowered to sign specific types of documents, such as contracts, checks, or legal documents, or they may have broader authority to represent the organization in a wide range of transactions.
The role of an authorized signatory is significant because it legally binds the organization to the terms and conditions outlined in the signed documents. As such, it is crucial that entities carefully select and vet individuals for this role, ensuring they are trustworthy and aware of the responsibilities and implications associated with their signature. In addition, entities typically maintain records or lists of authorized signatories to provide clarity and to ensure accountability, a critical aspect of good governance and risk management.
- QUOTE: An authorized signatory is an individual who has been granted the formal authority to sign official documents on behalf of an organization, business, or legal entity. This authority is typically given through a formal process that might involve the signing of a board resolution, a power of attorney, or specific authorization in the by-laws or operational policies of the entity. The scope and limitations of their authority can vary: they might be empowered to sign specific types of documents, such as contracts, checks, or legal documents, or they may have broader authority to represent the organization in a wide range of transactions.
2024b
- (Cygnetise, 2024) ⇒ Cygnetise. (2024). "Types of authorized signatories". In: Cygnetise Blog.
- QUOTE: Designated officers/employees within an organisation who are authorized to process and approve official documents and third-party agreements on behalf of the organisation are often referred to as "authorized signers".
The process of signature authorization usually forms part of a broader "Delegation of Authority Policy" that establishes an internal procedure for appointing approval and signing authority, and defining the level of scope of that authority. The policy also includes a list of general responsibilities for authorized signers to follow when reviewing, approving and processing company contracts and official documentation.
- QUOTE: Designated officers/employees within an organisation who are authorized to process and approve official documents and third-party agreements on behalf of the organisation are often referred to as "authorized signers".
2019
- (Law Insider, 2019) ⇒ Law Insider. (2019). "Authorized Signatory Definition". In: Law Insider Dictionary.
- QUOTE: Authorized Signatory means such senior personnel of a Person as may be duly authorized and designated in writing by such Person to execute documents, agreements and instruments on behalf of such Person.