Client Authorisation Form: Multiperson company "One Director only Signs"

[dle]

Hello - below is a screenshot from ARNECC's interactive client authorisation form, taken directly from its website.

There is an option for one director only to sign the form in a multi-person company. This  suggests it is sufficient for one director to sign the form, and presumably undertake VOI, for the Subscriber to be authorised to complete a transaction.

However this is inconsistent with s127 of the Corporations Act that a document may be executed without using a common seal if 2 directors sign the document. Given that two directors must also sign dealings in paper-based transactions, I am not sure when the option for "Multi-person company: One director only signs" is appropriate. 

Please provide some clarity as to when this option may be used.

[DMc]

My guess would be the individual CAF creation, of each separate individual authorised execution in counterpart. 

[YK123]

S 127 of the Corporations Act at (4)  "This section does not limit the ways in which a company may execute a document (including a deed)." (Emphasis added)

If a company's Constitution allows one director to sign without common seal where there are multiple directors, this would be a circumstance that you would use this option on the CAF.