07 February 2022
COVID-19 has prompted many legislative changes, including some very important (and overdue) reforms in relation to the electronic execution of documents by companies. You may be aware of these changes, but from a practical perspective, what should you consider when getting a document e-signed and when should you question the validity of an e-signature?
We set out below some practical considerations to help you determine whether a document has been validly executed by electronic means.
Essentially, company directors and secretaries can now electronically sign a document (or a copy or counterpart of the document) on behalf of the company.
A document is taken to be signed by a person if:
There is no mandated or preferred method for e-signing. However, we are seeing a number of ways this has been done in practice, including:
Depending on who is executing the document, the type of document and where and how it is to be executed, the commonly-accepted platforms, such as DocuSign, may not be available. So how can you be certain of the validity of the e-signature? Here are some ideas:
Ultimately, what is appropriate for a particular document will depend on the relevant circumstances.
E-signing reforms have provided greater flexibility, and it is likely that e-signing will continue to grow in popularity. We hope the tips above have got you thinking about your risk appetite and how to get comfortable with electronic execution.
If you have any questions or want to chat about e-signing, please contact us or send us your questions here.
Author: Janelle Moussa
The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.