Can One Director Sign An Agreement

In addition, a person may consider that a document has been properly executed if it appears to have been signed in accordance with the S 127 (1) of the law and that anyone who signs, where a certification clause states that he is the sole director/secretary of the company, occupies these positions. This power can also be expressed by an amicable agreement between the client and the agent (Federal Court of Justice decision in Chew Hock San-Ors/Connaught Housing Development Sdn Bhd [1985] 1 MLJ 350). These agreements may take the form of a power of attorney or a list of authorized signatories for the execution of very specific documents. This power can also be conferred by a letter of execution issued by the company itself. A company is a separate corporation with the same legal capacity as a natural person, such as signing contracts.B. However, unlike individuals, companies can only enter into contracts through the actions of their operators, such as directors or company secretaries. If they do not follow specific procedures, the contract may be unenforceable. Therefore, companies need to ensure that they are aware of the processes required to sign valid contracts. This article describes three ways to enable a company to sign a contract effectively. Agent Choo had stated that he was clearly entitled to act on behalf of CEPCO, the company at issue in this case, to conclude the administrative agreement.

This was also supported by the actions of CEPCO staff and its Board of Directors who supported Choo`s representation, such as Choo`s appointment to CEPCO`s Board of Directors and Choo`s opportunity to chair board meetings. Mr. Newman was also aware of ASIC`s negotiations and that the conclusion of the loan agreement was an important undertaking. On the basis of the above, it may be concluded that a company must know at all times the actions of its authorized signatories and also cautiously with respect to agents or third parties who reasonably believed that others have the power to sign such contracts and/or instruments on behalf of the company.