The Companies Act 2006 S43(1)(b) allows individuals to sign on behalf of a company:
Alternatively, Section 44 of that Act allows the company itself to sign. However, this requires a second authorised signature or an independent witness, so for digital contract signing it will often be easier for an authorised individual to sign on behalf of the company.
Whichever route is taken, the following is important:
- Each signatory must have the authority to bind the company; usually the Directors and anyone they authorise (expressly or implicitly) would have this authority.
- The company's name on the contract must be exactly the same as its registered name.
- The landlord signature field must make clear who the landlord is (whether individual or company) and who is signing.
- The signatory and their relationship to the company must be completely clear on the contract.
So, a possible format if signing on behalf of a company under clause S43(1)(b) would be:
'[Signatory name] on behalf of [Company name]' or '[Signatory name] as [Position] on behalf of [Company name]’
We recommend landlords who intend to sign on behalf of companies should take independent legal advice if they are in any doubt about who should sign the contract and the correct format of the signature.