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Executing documents - removing red tape

25 March 2008

With effect from 6th April 2008, a company will be able to execute deeds and documents with the signature of only one director, attested by a witness.

The Companies Act 2006 introduces this third method of execution for companies to sit alongside the more traditional methods of execution using a seal, and execution by two directors (or a director and the company secretary).

The change was brought about primarily by the fact that private companies will no longer be required to have a company secretary. However, any company may use any of the methods described above.

This may prove to be a far more convenient method of execution, particularly for companies with multi-location operations. On the other hand, the impact on a company’s internal control process, particularly for PLCs, should be considered. Some companies may prefer to retain a process which requires the signature of two directors to all, or certain types of documents.

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Oliver Brookshaw

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T: 08700 86 5000
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