A board resolution submitted after the contract is signed may be considered invalid.
- Many companies submit a board resolution only after signing a contract or agreement, but this practice is incorrect.
- Any document signed by the company (e.g., contracts, powers of attorney, agreements) must first be approved by a board resolution.
- If someone is to sign documents on behalf of the company, they must first be authorized by a board resolution to ensure legality and validity.
- For example, if a company has three directors and only one agrees to sign, the contract is still invalid because it lacks board approval and authorization.