Alternates/Committees/ Execution Formalities

A sensible precaution against potential illness may be for directors to appoint alternates to act instead of them. Again, check your company’s articles, as the model articles do not permit this. If included within the company’s articles it will set out the relevant procedure. It will often involve a written notice. The company’s register will need to be updated and the appointment notified to CH within 14 days. An appointment of an alternate could be a generally given or it could be restricted to specific decisions, the details will be set out in the company’s articles.

For larger companies, it may be deemed more effective to appoint a committee or delegate authority to a committee. Check your company’s articles which must expressly authorise this.

Note that if a company needs to enter into a deed such as a power of attorney, the proper execution formalities must be followed, this includes being executed in front of a witness, which may be an issue given self-isolation.