signing of cheque by non-office bearer

Ofcourse, The directors may authorise any senior employee of the company to sign the cheques on the behalf of Company.

agree, even it is the practice by the companies to authorise senior and responsible officers to sign th the cheques.

Originally posted by : vivek
	agree, even it is the practice by the companies to authorise senior and responsible officers to sign th the cheques.

Thank you Mr Ankur and Mr Vivek i got this point. thanks.

But in one case, the board of directors of a privale limited company who are all relatives from one family, want to give authority to their another family member who is not the office bearer of the company. The board does not want to give authority to it's senior officers/managers to sign cheques since they do not have faith in them but they want to authorize their relative to sign each and every cheque through out the year.

Is this possible?

thanks.

Board is utmost powerful to delegate it's power to anyone but bank may ask for his relation beacuse he is neither the director of the company nor the employee, so it would be better to appoint the said gentelman as DIrector or employee, that decision will be prudent one.

By the way the said Gentelman should get some amount (reward) for taking the risk as you are aware under NI Act he will become directly responsible.

Others views solicited.

Regards,

Dear Anand.

Pls go through this discussion.

/forum/authority-to-the-outsiders-89204.asp?1=1&offset=1

Regards.

The directors may authorise any senior employee of the company to sign the cheques on the behalf of Company...but the director is also liable for any frauds and errors done by an senior employee if any if the director gives any authority to any senior employee to sign on the company cheques then all the cheques signed by senior employee is on behalf of director....

Agree with vivek