Q&As

Can a Head of Finance of one company in a group of companies sign the contractual documents of another company in the same group? What formalities are required for any such signature to be valid?

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Published on LexisPSL on 29/06/2018

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • Can a Head of Finance of one company in a group of companies sign the contractual documents of another company in the same group? What formalities are required for any such signature to be valid?

In this Q&A we refer to a signature by a Head of Finance who is not a director of any of the companies.

A company can execute simple contracts in one of two ways:

  1. by a company, or

  2. on behalf of a company

See section 43 of the Companies Act 2006.

Execution by a company can be achieved by way of a signature of two authorised signatories or a director who signs in the presence of a witness who attests the director’s signature.

Execution can also be achieved by a person signing (usually a director) the contract under their express or implied authority. Whether or not the company is bound by t

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