Execution of bills of exchange, etc
📚 Law Minded summary
This section covers negotiable instruments and formal deeds.
A bill of exchange, hundi or promissory note counts as the company's own if it is made, accepted, drawn or endorsed in the company's name by someone acting with its authority.
For deeds and contracts signed elsewhere, the company can authorise a person in writing to act as its attorney, and what that attorney signs binds the company.
(1) A bill of exchange, hundi or promissory note shall be deemed to have been made, accepted, drawn or endorsed on behalf of a company if made, accepted, drawn, or endorsed in the name of, or on behalf of or on account of, the company by any person acting under its authority, express or implied.
(2) A company may, by writing 2[under its common seal, if any,] authorise any person, either generally or in respect of any specified matters, as its attorney to execute other deeds on its behalf in any place either in or outside India: 3[Provided that in case a company does not have a common seal, the authorisation under this sub-section shall be made by two directors or by a dire ctor and the Company Secretary, wherever the company has appointed a Company Secretary.]
(3) A deed signed by such an attorney on behalf of the company and under his seal shall bind the company 4***. CHAPTER III PROSPECTUS AND ALLOTMENT OF SECURITIES PART I.—Public offer
All sections in Chapter II — Incorporation of Company and Matters Incidental Thereto