Section 44 of the Companies Act 2006 (CA06) came into force on 6th April 2008 and was introduced mainly to reflect changes permitting private companies to exist without having a secretary.
- Under the CA06 documents may be executed by a company in one of three ways:
1. Section 44(1) CA06 – by affixing the company seal
2. Section 44(2)(a) CA06 – by two authorised signatories
3. Section 44(2) (b) CA06 – by a director in the presence of a witness who attests the signature.
- Who are ‘Authorised Signatories’?
Section 44(3) (a) CA06 – every director of the company
Section 44(3) (b) CA06 – the secretary (if the company has one)
- If there are several companies who are parties to the document and one signatory is an ‘authorised signatory’ of one or more of those companies then that person may sign in his capacity for each, but he must sign in all required places and not rely on one signature in respect of his several different positions.
- If a company has more than one director then the provisions of section 44(2) (b) CA06 may still be applied allowing one director to sign with a witness.
- If the director executing the document is itself a company, then the document must be executed by a ‘real’ person and therefore the document may be executed by a person authorised to sign on behalf of the director company – Section 44(7) CA06
- Simple contracts can still be signed by a single person authorised by the company to do so (whether expressly or impliedly) without a witness being necessary – Section 43(1) (b) CA06
Execution Clauses
Deeds
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By Company Seal
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EXECUTED AS A DEED by affixing the Common Seal of [COMPANY NAME] in the presence of:
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COMPANY SEAL
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Director
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Director or Company Secretary
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By two authorised signatories
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SIGNED AS A DEED by [COMPANY NAME] acting by [NAME OF DIRECTOR], a director and [NAME OF DIRECTOR OR SECRETARY], a [director][secretary ]
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Director
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Director/Secretary
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By single director in the presence of a witness
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SIGNED AS A DEED by [COMPANY NAME] acting by [NAME OF DIRECTOR], a director in the presence of:
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Director
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Witness signature
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Witness name
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Witness Address
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Witness occupation
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Contracts – not by deed
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SIGNED BY [NAME OF DIRECTOR] for and on behalf of [COMPANY NAME]
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Director
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