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Instructions – corporate client |
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A reminder of the importance of getting clear instructions as to who is
the client. This is especially so when instructed by a company within a
group, or where a company director is also involved with other
companies. In such situations there can well be confusion about what is
the instructing entity. For instance:
- consider doing a company search and check that you know the
precise name of the company that is instructing you;
- check the names of the registered directors. Are you being
instructed by a director? Even if the person is a director, does he
or she have the consent of all the other directors for the proposed
course of action?
- ensure you get a suitable letter of authority, or a copy of any
relevant board resolution;
- consider whether the proposed action (or transaction) is intra
vires the company. If in doubt, obtain an up-to-date copy of the
Memorandum and Articles.
For general guidance (and for some horror stories of when things went
wrong) see Zurich@risk (July 2007). © Practical Lawyer
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September 2007 |
