There are the certificates which are issued by the certain corporate, and other organization’s in order to confirm the vested post of these organizations with their employees, which entitles those employees official to get into the contract on behalf of the company, and make a legal and binding transactions on behalf of the company.
In today’s topic we are going to talk about such certificates which are known as the certificate of incumbency.
A certificate of incumbency is generally issues by the corporate or the limited liability company in the public interest this certificate basically names out the names of the employees that have been signed in by the corporate or the limited liability company at their various posts.
These employees may be the board of directors, major shareholders with some powers, and other officers and the purpose of this incumbency certificate is letting the general public know, that the particular employees as are mentioned in the certificate hold the power to make the certain transactions on behalf of the company, and make the company liable in respect to those transactions.
Certificate of incumbency Sample
In the above section we have discussed about the certificate of incumbency and if you are new to this term then you must be aware with this term. Since this is the most common used term in the corporate world and you are supposed to be aware with it being belonging to the corporate world.
These certificates of incumbency are issued by all the corporate sector companies in the interest of general public and the company as well since issuing the certificate of incumbency keeps the things clear as to what are the employees that are vested with certain powers in respect of making transactions on behalf of the company and making the company liable.
If you are wondering that how this certificate of incumbency actually looks like then for your reference we are attaching some samples of the incumbency certificate have a look over these samples and get the insight about them. These certificates are freely available to be downloaded as well.
What is a Certificate of Incumbency
In the corporate world it is a very common practice to issue a certificate of incumbency so as to let the general people which might be the stakeholders of the company may know about the employee which are vested with some powers, on behalf of the company.
These employees may be the board of directors, major shareholders or other officers, and these employees hold the power to make the company liable on the basis of the transactions, that these employees make with the outside world.
The certificate of incumbency serves a very basic purpose and that is the blockings of the fraudulent transactions, since there are such fraudulent incidents happening which uses the name of the unauthorized employees of the company, and make the bogus transactions on the behalf of the company. Certificate of incumbency puts such threat away, both from the corporate and the general public.
Certificate of Incumbency Meaning
So far in the above section we have discussed about the definitions, usages and the importance of the certificate of incumbency. Now if we further talk about the meaning of these incumbency certificate then the meaning also doesn’t vary much these certificates are just like any other legal certificate which are issued to certify the fact.
In the incumbency certificate also, the fact that is only certain employees which are named in the certificate, are vested with the transactions making power on the behalf of the company, and hence also having the legal authority to make the company liable on the basis of such transactions.
In the certificate of incumbency all the employees that have been signed in by the company a detailed list of all those employees, along with their posts and the power can be made so as to make awareness in the mind of all the stakeholders that might be dealing with the company.