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It’s really irrelevant that a board can give signing permission to Joe Blow - Sr. Wizard III, because the counterparty would never accept such a contract. No ba

It’s really irrelevant that a board can give signing permission to Joe Blow - Sr. Wizard III, because the counterparty would never accept such a contract. No bank, for example, is going to write a note to a corporation that unless the person in question is clearly an officer. I only mention this because I’m on my third corporation serving as an officer. Ignoring the pedantic bits an above, an employee will never completely climb the career ladder without a management role. You can pretend that corporate officers don’t exist, or come up with an arcane loophole that doesn’t reflect reality. It’s not really how corporations are run.

dragonwriter 4y ago
> It’s really irrelevant that a board can give signing permission to Joe Blow - Sr. Wizard III, because the counterparty would never accept such a contract For significant contracts, they’ll either want proof of the existence and scope of signing authority or, without that, accept only the specific officers that the law will bind the corporation for as long as the counterparty doesn't have negative knowledge, which (in CA) is: Acting individually: no one at all, not even the Chairman/President. Acting together: one each of either the Chairman, President, or any Vice Preisdent and the Secretary, Chief Financial Officer, or any Assistant Secretary or Assistant Treasurer. (See, Cal. Corporations Code, § 313) I suppose its possible that some counterparties may take risks on less significant contracts by presuming lesser titles have some signing authority without specific evidence (why, though?), but I can’t imagine that anyone whose signature alone isn’t presumptively valid under applicable state law to bind the company would ever be preferred on the basis of their title versus someone with a less impressive title and documented signing authority. > Ignoring the pedantic bits an above, an employee will never completely climb the career ladder without a management role. I think you are confusing a “career ladder” (of which there tend to be multiple within an institution, including, in many areas, parallel “manager” and “specialist” tracks in the same domain) with the organizational heirarchy (of which there is one, and where the very top is definitively a manager). Yes, you will never be a CEO without being in a management role, that is trivially true.

dragonwriter 4y ago

> It’s really irrelevant that a board can give signing permission to Joe Blow - Sr. Wizard III, because the counterparty would never accept such a contract For significant contracts, they’ll either want proof of the existence and scope of signing authority or, without that, accept only the specific officers that the law will bind the corporation for as long as the counterparty doesn't have negative knowledge, which (in CA) is: Acting individually: no one at all, not even the Chairman/President. Acting together: one each of either the Chairman, President, or any Vice Preisdent and the Secretary, Chief Financial Officer, or any Assistant Secretary or Assistant Treasurer. (See, Cal. Corporations Code, § 313) I suppose its possible that some counterparties may take risks on less significant contracts by presuming lesser titles have some signing authority without specific evidence (why, though?), but I can’t imagine that anyone whose signature alone isn’t presumptively valid under applicable state law to bind the company would ever be preferred on the basis of their title versus someone with a less impressive title and documented signing authority. > Ignoring the pedantic bits an above, an employee will never completely climb the career ladder without a management role. I think you are confusing a “career ladder” (of which there tend to be multiple within an institution, including, in many areas, parallel “manager” and “specialist” tracks in the same domain) with the organizational heirarchy (of which there is one, and where the very top is definitively a manager). Yes, you will never be a CEO without being in a management role, that is trivially true.