Define Signatory
A signatory refers to a person of an organization/company who is authorized to sign documents and papers on behalf of the organization or company. The person, as the signatory, has to be a representative of the company to welcome the clients, creditors, employees as well as stakeholders. The signatory is required to sign documents such as treaties, business contracts, agreements, bank documents, and many other documents which can be legally enforced.
It is the responsibility of the organization/company to authorize the heads of different departments within the company to act as the authorizing personality and sign documents as a signatory on behalf of the organization. For example, the chief accountant, as a signatory, is required to sign payment slips, invoices, vouchers, and several other documents. Similarly, the HR manager is entrusted to be the signatory during employment contracts, salary slips, and others. The operation heads of several departments are entrusted with the role of signatories for purchase orders, job orders, quotations, etc.
A signatory represents the legal face of the organization entrusted with all the documents that he or she has signed.
