Corporate Authority Fundamentals: Delegation, Signing Authority, Approval Matrices, and Unauthorized Commitments

This CLE webinar will examine best practices for establishing and managing who may approve company action, sign contracts, delegate authority, and bind the company to legal obligations.

Companies act through boards, managers, officers, employees, and agents. Counsel must understand when formal entity approval is required, who may sign contracts and other legal documents, and how authority should be delegated and documented.

Issues involving proper or improper authority may arise in day-to-day business. Perhaps a contract was signed by the wrong officer or approved beyond policy limits. Maybe it was executed by an employee without the proper authority or was processed through an electronic workflow without proper review or oversight.

When these issues arise, disputes may follow over whether the company is bound, whether an internal policy was violated, and whether later approval or ratification is required. Clear approval controls can help. Our authoritative panel will discuss how to structure policies and procedures to minimize the risks from improper authorization or exceeding authority levels.

Listen as our panel explores corporate authority fundamentals, covering entity approvals, officer and employee authority, delegation policies, approval matrices, contract signing controls, apparent authority, e-signatures, unauthorized commitments, and ratification.