Authorized Signatory: Meaning and Signing Authority

What is an authorized signatory?

An authorized signatory is a person with authority to sign a document on behalf of another person or organization. That authority may be limited by document type, transaction value, time period or approval conditions.

Being able to access a signing request does not establish that authority. Nor does an employee's job title automatically answer whether they can enter a particular agreement for the company.

Identity and authority are separate checks

An electronic signature may help record who signed and what they signed. Even a qualified electronic signature does not automatically prove the signer's power to bind an organization.

Before sending an agreement, identify the contracting entity and check the representative's authority for that transaction. Record the representative's capacity in the contract signature block; naming a role there describes the capacity, but does not create authority.

Does authorized signatory have one legal meaning?

No. The rules depend on the jurisdiction, entity and document. For example, section 43 of the UK Companies Act 2006 addresses contracts made under a company's express or implied authority in England and Wales or Northern Ireland. Section 44 uses a specific authorised-signatory category for formal company execution. These are different routes with different requirements, not a universal rule that every contract needs two signatures.