The previous 54 of the Companies Act 1956 did not talk about Board authorisation. So this probably means that each company will have to pass an omnibus resolution at its Board of Directors authorising each of its identified Key Managerial Personnel to sign a specific set of documents/ contracts etc. What will happen to the existing Power of Attorneys given to the Managing Directors. The Managing Directors and Executive Directors always had some inherent powers by virtue of their holding the position of directorship in the company to sign certain documents or contracts on behalf of the company.
Section 21 of Companies Act 2013 which has been notified says that document or proceeding requiring authentication by a company or contracts made by or on behalf of the company may be signed by any Key Managerial Personnel or any officer of the company “duly authorised by the Board in this regard”.