Apr
Hi, I need to write a letter where the board authorizes individuals to sign contracts up to a certain value. These persons are in a temporary project organisation within the company. What kind of letter would this be - I assume it is the corporate equivilant of a Pwer of Attorney but it must have another word?
Answer:
I don't think you're looking for a power of attorney. I think you need to draft a “corporate resolution” for the board of directors to sign that would authorize certain defined individuals to enter into contracts on behalf of the company up to a certain dollar value for certain defined purposes and for a certain period of time not to exceed ____.
The document would be titled “Resolution of the Board of Directors” - you could put in some “Whereas” clauses (for example, “Whereas, the board of directors believes it would be in the best interest of the Corporation to permit ____ to enter into contracts of up to $____” and “Whereas ____”, the Board of Directors hereby adopts the following corporation resolution this ___ day of _____, 2008.
“The individuals list on the Exhibit A attached to this Corporate Resolution shall have the authority to bind the Company to a contract not exceeding $_____ for the purpose of _________. This authority shall expire on _________ unless further authorization is made in writing by the board of directors.”
Yada yada yada - you get the idea.
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