In the company I work in, there is this practice of internal stakeholders affixing their initials on the agreements, before the authorized signatory affixes his signature.
That is to say,
--. First the person who drafted the contract puts his initials on the agreement
-- Second the functional Head initials the agreement, Thirdly the Director - Compliance & then the CFO puts his initials on the agreement
-- all these initials are put at the bottom of the authorized signatory page
-- Based on these Initials, the Managing Director affixes his signature as the authorized signatory
my question is
1. Since the internal stakeholders have no capacity to initial the contract, what is the implication of this practice?
2. Can you pls point me to anything in the law, that makes this practice wrong, if so....