I prepared a trust deed for a client, the trustee of which has two directors. When completing the company details I answered that there were two directors and it allowed me to tick one director as signing the deed thus I assumed one director could sign. The bank have however said that two directors must sign according to section 127 of corps act. Is this correct?
Section 127 of the Corporations Act allows companies to execute documents without common seal if it is signed by: two directors; a director and a company secretary; or. for proprietary companies with a sole director who is also the sole company secretary, by that director. So trust deed needs to be signed as per Section 127 of the Corporations Act. If it is sole director then that is okay - but if two directors they will not accept only one signing.