If a Bill of Exchange is accepted by a company, then under section 22 a person shall be authorised by the company to execute the transaction.
How till the company authorise such person for such transaction? Is it through Board resolution?
Section 22:
(1) A bill of exchange, hundi or promissory note shall be deemed to have been
made, accepted, drawn or endorsed on behalf of a company if made, accepted, drawn, or
endorsed in the name of, or on behalf of or on account of, the company by any person acting
under its authority, express or implied.
(2) A company may, by writing under its common seal, authorise any person, either
generally or in respect of any specified matters, as its attorney to execute other deeds on its
behalf in any place either in or outside India.
(3) A deed signed by such an attorney on behalf of the company and under his seal
shall bind the company and have the effect as if it were made under its common seal.
