What happens when contracts are signed on behalf of an organisation but the signatory is not a member of the committee?
A22 Technically when entering into a contract each named board of management member should be on the contract and when membership changes there is indemnity is for the outgoing member. Where individuals sign on behalf of the organisation without authority it is legally binding against the individual and in question as to whether they are covered by the company’s insurance. To the outside world a claim would be made against the company who could then claim against the individual who signed without authority.
