Record a director instruction clearly during closure
- Reading time
- 2 minutes
- Last reviewed
A message saying "go ahead" can be difficult to interpret later. Record the action it refers to, the company involved and the basis on which the instruction is being given.
The record should describe an instruction made through the appropriate process. It should not be used to manufacture authority after the event or replace formal documents that the company's circumstances require.
The Insolvency Service's general duties guidance points directors to the company's constitution when considering their powers. Ask a solicitor about unclear authority or approval requirements before relying on a director's title alone.
Capture the scope while it is clear
A practical instruction note identifies the date, person, capacity, relevant company, defined action and referenced document version. Include conditions, exclusions and the recipient who is expected to act.
For example, this fictional record is narrower than a general permission:
3 October: the director, acting for Company A, confirmed that the coordinator may gather the missing records for items A1 to A6 in brief version 2. Marketing and any additional items remain outside this instruction pending the required review.
That note does not establish legal authority by itself. Its purpose is to make the scope intelligible alongside the underlying evidence and advice.
The authority map should show where the decision came from. Release-to-market checks apply when the action being considered moves beyond preliminary preparation.
Preserve qualifications exactly enough to matter
If approval depends on a document being checked or another decision being made, keep that condition in the working record. Do not circulate only the sentence containing "approved".
Ask for clarification where the instruction refers to an unclear list or uses ambiguous language. An asset added later is not automatically covered by an earlier instruction concerning a different scope.
For group businesses or multiple roles, state the capacity explicitly. A person may be a director of more than one company or also own property personally. Entity identification prevents a familiar name concealing which party is involved.
Keep the actual message and referenced documents through the appropriate record arrangements. A coordinator's summary is useful but should remain traceable to the original evidence.
Provide UK Auction Group with a clear current instruction and identify any limitation before work proceeds. If a later message changes the scope, date it and confirm what it supersedes through the authorised route.
The practical test is whether someone reading the record next week can distinguish what was authorised, what was excluded and what still needed an answer. If they cannot, obtain clarification while the decision is still fresh.
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Sources
This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.