A board signatory is the individual who is responsible for signing agreements and contracts on behalf of a company. They are authorized through a formal process either in the documents that form the foundation of the company, or through a board resolution. The document or resolution outlines the extent of their authority and how it is limited. This provides clarity internally within the organization and externally with business partners on who has the legal power to legally bind the company to agreements.
The term “board signatory” is typically used to refer to a particular person who is responsible for the approval of significant expenditures and crucial decisions for an organization, like purchasing new office equipment, or establishing a contract with a supplier. They may also be required to negotiate better pricing or terms on the procurement side, and they are likely to be able to review and make modifications to contractual arrangements, too.
To achieve the best results the organizations that confer these powers should evaluate and share their internal procedures to ensure that the authorized signatories have a deep understanding of the organization’s goals and aims. This information helps them make informed decisions regarding how they exercise their authority and minimizes the chance of unauthorized or conflicting actions. For instance, it’s standard for companies to use dual approval or permission processes to limit the chance of misuse by ensuring that at least two persons scrutinize and approve the activities before they occur.
https://creativetrance.com/why-data-security-should-be-a-priority-in-virtual-data-rooms/