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Can Director(s) sign Resolution digitally ?

Even without the Pandemic, to get signature from Director(s) is a tedious and challenging task.


Distance and travelling is costly and time consuming.

Passing around paper could be a tiring process when few signatories involved.


The short answer to above question is YES. Legally we have two laws enable us to do so.

1) Electronic Commerce Act 2006 (“ECA“)

2) Digital Signatures Act 1997 (“DSA”)


And the Company's Constitution can be drafted to specifically allow Resolution be signed electronically or digitally.


There are lots of jargon and technical word in the ECA and the DSA but in short, in layman term, we are allowed under the law to get director to sign electronically or digitally.


Compared to traditional way, (Digital or Electronic) It provides more assurance than a wet signature because when it is done digitally, it often leaves a trace of data that can be observed. There have already been several court cases in the world where judges have ruled in favour of the reliability of e-signature, solidifying them as a viable, legally binding method.

 

Digital vs. Electronic


What is the different ?


Are we signing electronically or digitally ?


Which is which ?


Stay tuned to learn more.


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