A board signatory is someone who is authorized to sign contracts and agreements for the company. They are empowered through a formal process either in the founding documents of the company, or through an approved board resolution. The resolution or document outlines the scope of their authority, including how it is restricted. This provides clarity internally within the company and externally with business partners about who holds the legal authority to bind the company to agreements.
The term “board signatory” is used to refer to a specific person who is responsible for approving important expenditures and decisions for an organization, for example, purchasing new office equipment or establishing an agreement with a supplier. They could also be responsible for negotiating better pricing or terms on the procurement side and are likely to be able to make revisions and changes to contractual arrangements, too.
For the best outcomes, organizations that grant such powers should carefully review their internal procedures and then communicate them to authorized signatories so they have a clear understanding of the company’s goals and objectives. This knowledge allows them to make informed decisions about how they use their authority, and minimizes the chance of illegal or conflicting actions. For example, it’s common for companies to have dual approval or authorization processes to limit the chance for misuse by making sure that at least two people examine and approve activities before they begin.
https://creativetrance.com/why-data-security-should-be-a-priority-in-virtual-data-rooms/