Difference between Director and Authorised Signatory

technology head

Hi,

I joined an already created pvt. ltd co. as a invester few months back. We had few directors earliers who were also authorised signatories. In recent changes I was also made one of the director and cuCOO and current team were made to report to me. However no changes in the authorised signatory( I am not one among authorised signatory).

Is there any issue in this case?

Secondly am i losing in this deal anything?

 

Thanks in advance

 
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CMD of SHAYVIDZ Group

Director means a person who is appointed as Director under Companies Act.

 

However, in ur case, the Authorised Signatory mean signature of person who are authorised by the board of directors for excecution of any specific activity/signing documents relatiing to any specific activity.

  

An authorised signatory need not to be a director also. An employee of the company may also be an authorised signatory if authorised by the board.
  

 
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technology head

Hi,

Thanks for the quick reply. I have this basic understanding.

The reason why I was asking was this was the current two directors have been authorised to manage the finance including the signing of cheques and managing the bank, where as in case me, I don't have any rights to do any finance transactions. Will that be a Issue is what I am bit confused or should I demand to change the resolution to include me into the finance authorised signatory.

Thanks

 
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CMD of SHAYVIDZ Group

Dear Rajiv Ji,

 

Its purely depends upon the understanding among you three people !! You can also be included in the cheque sigining authorisation !! its purely business stratic decision !!

 

In my opinion, a clear understanding will never bring any dispute !! so if all of u are not a part of family member, then keep equal rights in everything !!

 

but signing in cheques only will not effect ur rights for future action !! so, its not that much important point !!

 

In fact, I sign on cheques of two private limited companies, however I am not a director in any of these two companies !! Even no other directors(except two others) have the signing power !! I am having more power than other directors but I cannot sign on cheque payment of which is unapproved !!

 

So its just business routine !! no thing so much for this !!

 
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