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CORPORATE LAWS (Company Law,LLP,SEBI,Competition etc..)

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By : Swagat Mohanty
On : 26 July 2013

Authorisation in favour of stranger

 A Pvt Ltd co (Closed one), authorises a complete stranger to operate their Cash credit facility, by way of a Board Resolution. There is no specific resolution as to use of company logo, pad, seal etc.


Is it permissible on part of bank to accept such authorisation and permit the stranger to operate the account ?


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