If you own a company or are in charge of a company, certificates of incumbency is a term that you need to familiarize yourself with. Certificates of incumbency are important certificates that need to be provided to individuals who have certain authority within a business, such as the authority to enter into contracts with other businesses or the authority to withdraw money from a business bank account. Here are a few of the questions that you may have about certificates of incumbency and the answers.
What Are Certificates of Incumbency?
A certificate of incumbency is often given to higher-ups in a business organization, such as an LLC or corporation, that helps to identify the role of the individual within the company. Some of the key individuals who are often given a certificate of incumbency include the business owner or founder, the president, the CEO, the CFO, the secretary, and the treasurer. In some cases, some organizations or businesses may also decide to give a certificate to other directors, stakeholders, or officers as well. The certificate often lists who the individual is, what their position within a company is, whether they are appointed or voted to that position, and how long the certificate is good for.
Why Might Someone Need a Certificate of Incumbency?
A certificate of incumbency is often used for a few different reasons. First off, a certificate of incumbency may be used when entering into a legal agreement. The certificate helps to show that the person signing the agreement is legally able to enter into legal agreements on the company's behalf. Secondly, a certificate of incumbency may be needed when accessing business accounts. Since business bank accounts and credit accounts are often in the business name, a bank or credit agency needs to see who can legally access these accounts, and a certificate of incumbency may help.
Who Draws Up Certificates of Incumbency?
Technically, your business can draw up a certificate of incumbency. However, if the certificate is missing key pieces of information, it may not be legally binding. Additionally, some organizations, such as banks, may require a certificate to be notarized or certified, to prove the document has not been forged and is legally binding. A business attorney can help you draw up certificates of incumbency and certify them for your company.
Certificates of incumbency are legally binding documents that are given to individuals in a corporation or LLC who has specific powers and duties within that organization. If your company needs help drawing up certificates of incumbency or certifying those documents, you need to find a business lawyer who offers this type of service. Reach out to business lawyers in your area to get help with your company's certificates of incumbency.
