What does a Corporate Resolution demonstrate in the leasing process?

What does a Corporate Resolution demonstrate in the leasing process?

• A. The supplier's warranty
• B. The lender's credit approval
• C. The board's authorization for signers to bind the corporation
• D. The lessee's ownership claim

Answer: (C)

A Corporate Resolution shows that the board of directors has authorized specific officers or representatives to sign documents and bind the corporation to contracts like a lease. This provides the lender or lessor with assurance that the people signing on behalf of the corporation have legitimate authority to commit the company, making the lease enforceable against the corporation. It usually lists the authorized individuals, their titles, and the scope of their authority, and may include a secretary’s certificate confirming the resolution is in effect. This is about authorization to bind the company, not about a product warranty, credit approval, or ownership claim.

A Corporate Resolution shows that the board of directors has authorized specific officers or representatives to sign documents and bind the corporation to contracts like a lease. This provides the lender or lessor with assurance that the people signing on behalf of the corporation have legitimate authority to commit the company, making the lease enforceable against the corporation. It usually lists the authorized individuals, their titles, and the scope of their authority, and may include a secretary’s certificate confirming the resolution is in effect. This is about authorization to bind the company, not about a product warranty, credit approval, or ownership claim.