By Philip Hayden, 18th June 2018
One useful addition to the Companies Act that has yet to be utilised by many entities is the option of appointing a Registered Person. Section 39 of the Companies Act 2014, allows the appointment of someone to bind a company who is not currently sitting as an officer of the company. In many cases, this is a less expensive alternative to appointing a power of attorney.
Why use an Appointed Registered Person?
The idea behind this addition to company law is to make it easier for an agent or representative to display authority to act on behalf of and generally bind a company. An appointed registered person would ideally be capable of binding the company without the need to provide additional documentation. The appointment is made through a filing with the Companies Registration Office signed off on by a current officer of the company.
The exception here would be cases when a direct officer of the company is required to sign on behalf of the company. For example, an annual return. The mechanism is an ideal alternative for putting a basic power of attorney in place. It is worth noting that a Registered Person should not be appointed where their powers should be limited in any way or restricted to certain contracts.
Much of the reason this practice has not become commonplace could be due to the fact that a bank will still go through a standard set of checks and require supporting documents regardless of an Appointed Registered Person.
For advice on appointing a Registered Person or any other alterations to your company, please Contact Us. Our expert company secretarial department would be happy to assist you.
Disclaimer This article is for guidance purposes only. It does not constitute legal or professional advice. No liability is accepted by Company Bureau for any action taken or not taken in reliance on the information set out in this article. Professional or legal advice should be obtained before taking or refraining from any action as a result of this article. Any and all information is subject to change.