Board resolution is sufficient to authorise one person to sell the property
2) POA is not necessary
3) it should not create any problems
Is board resolution from company valid to sell property without registered power of attorney
I had got a sale agreement with a company 'B' for sale of a villa who holds joint development agreement with company 'A'. Company B had taken over the project from Company A and are selling the units however Company A is still the owner and therefore the sale deed is tripartite with both Company A (Owner) and B (Confirming party) signing with me (Buyer). I had paid a high amount to company B for the planned registration however at the last moment I was informed that the signatory from company A had to travel and will be back in a month due to which we had to postpone the registration. Company B also gave me a Post dated cheque for the amount I had paid as security. Now the signatory ( Director) of company A is back in town and they are preparing for registration. However I got to know that the directors of company A and B will give board resolutions authorizing one person each to appear in front of the registrar to register the property on my name. There is no registered power of attorney to these employees. I want to know if the board resolution is legally valid and sufficient to go ahead with the registration without a registered power of attorney. Will there be any other problems in the future ? will there be any problems in case I sell the property in the future ? Looking for your kind advice
Asked 2 years ago in Property Law
Religion: Christian
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10 Answers
Coexistence of Board resolution and Power of Attorney is very important,
Thanks
HI
In general sale of properties in the name of the company has to be authorised by its share holders in its General body meeting.vide section 293 of companies act.
Therefore, it is important that you have a copy of the minutes of the General Body Meeting which authorises the board of directors to sell the property of the company.
Mere board resolution (even if signed by all directors) are not sufficient. So, please insist on certified copy of the Minutes of the General body meeting to be supplied to you prior to registration of property.
Hope this information is useful.
1. Since Company "A" and "B" are parties to the tripartite agreement, the representative/s of the Companies have to carry the required documents, such as POA/Authorisation letter, Copies of resolution of the Company's Board authorising the representative/s to carryout the registration.
2. Unregistered POA will not be a valid one.
3. There will not be any problems in future if there's a registered POA.
Thank you all for your valuable answers. Just wanted to clarify one point as I am a little confused when putting together all the received answers. What we will have is : 1. Employee of the companies will carry the extracts of minutes of meeting of the board of directors and the resolution authorizing the employee to appear for registration. What we do not have : 1. The employee who appears for the registration does not have a registered power of attorney from the director(s) of the company Can I go ahead with the registration ? Thank you in advance!
Asked 2 years ago
You can go ahead with registration
The POA for sale of any innovation property needs mandatory registration and sale deed for the same.
Hi, Board resolution is sufficient and on the basis of the Board Resolutions the Director of the Company can authorize any of his employee to represent on behalf of the company.
The board resolution authorizing the company representative will prove that the person selling the property on behalf of the company is responsible person but it may be mandatory that the authorization deed to sell the immovable property should be a registered deed.
The registrar may not entertain the execution of sale deed
The company should register the authorisation deed in favor of the authorized representative
In that power of attorney deed may not be necessary.
Dear Sir,
Power of Attorney is not necessary in case of Corporates. Only resolution is sufficient.
