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rahul shakya   18 January 2022

Sale deed

There are five companies let’s A, B, C, D and E which have come together to develop and construct a property project for onwards Selling through a development agreement.

In the development agreement, E was authorised by A,B,C and D for construction and development of the land/project.

Thereafter each of the companies above, by means of a Board resolution, authorised Mr X to sign and execute sale deeds etc on their behalf. However, X is an employee of only E and has no relation to other companies.

Is the Board resolution passed by A B C and D valid?
Or the authorisation given by A B C and D in this regard should have been given by a Power of attorney


Learning

 1 Replies

Aryan Raj   19 January 2022

In response to your query,

A board resolution is sometimes also called a corporate resolution. It's a formal document that solidifies in writing important decisions that boards of directors make. Resolutions authorize committees to take action on matters that the board voted on.

Power of Attorney is a legal document executed by one or more persons giving an authority to one or more persons to act on his or her behalf. The person giving authority is called the attorney of the party giving the authority. The person receiving powers is called Power of Attorney holder

Yes the resolution passed by A, B, C and D is valid and all actions in it can be taken and papers or documents can be signed as per authority given by Resolution. If there is a Resolution it is not necessary to have a POA. 

Regards,

Aryan Raj 


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