Document background
A Board Authorisation Letter is a crucial governance document used when a company's board needs to formally delegate authority or approve specific actions. This document, governed by English and Welsh law, provides clear evidence of board approval and helps maintain proper corporate governance. It typically details the scope of authority granted, any limitations or conditions, and the duration of the authorization. The letter serves multiple purposes, from enabling day-to-day operations to facilitating specific transactions, and must align with both the Companies Act 2006 and the company's constitutional documents. It provides legal certainty and protection for all parties involved, including third parties who may rely on the authorization.
