Non directors have signed the contract lease

Heres an interesting one I think.

We have a situation where a sale went through but the directors were never sent any lease documents to sign (although they were sent monies for past fees.) After requesting the lease documents it appears that other people signed for the management company.

One person was previsouly a director of the OMC but resigned 6 months prior to the sale date. That person was also still a director of the building firm which built the estate which was in receivership at the time.

The other person was a solicitor who had been 'authorised' by the first person to sign.

Once the developer has resigned all his positions in the OMC does he retain any powers to act on behalf of the company as the builder still that anyone knows of? In this case signing documents as a director of the OMC when they are not?

Did the signature page say "Signed for and on behalf of...."

I'm not a lawyer, but you should check out with a lawyer how it was signed and rights are in place

Hi there,

Was the B10 filed with the CRO informing them that the director had resigned? If someone on the other side did a search and say their name as a director they would accept it.

A director who has resigned has relinquished all rights to sign on behalf of the company and should not be signing anything in my view.

Joe, B10 clearly shows date that previous directors resigned and it was a good long time before the dated lease (5 months.)

I would think that was invalid, if the director has resigned they have no authority.

Who allowed them to sign the lease? If the managing agent handled this then they need to correct this. A new lease should be signed by the current directors, that lease is not valid.

I would definitely get this checked by your solicitor, there might be a possibility the lease is invalid and therefore fees and the owners membership is in doubt.