ACCOUNT OPENING RESOLUTION
DEFINITION
A company board resolution is passed in a board meeting which authorizes certain individuals in a company/LLP to open and operate a bank account in a bank. As the company is recognized as a separate legal entity, this board resolution is necessary to open a bank account apart from the other required documents. In the case if a said company/LLP chooses to have multiple bank accounts with different banks, separate board resolutions have to be executed for each of these accounts to be opened. In this kind of board resolution, usually the first resolution executed after a company/LLP has been incorporated.
USING THIS BOARD RESOLUTION
A board resolution to open a bank account is used to open a bank account of a Private Limited Company/Limited Liability Partnership/ Public Limited Company/Section 8 Company/One Person Company/Foreign Companies. Once, such a board resolution has been passed, it is then printed on the letterhead of the said business, duly signed by the Directors and provided to the bank where the account is to be opened.
EXECUTION OF BOARD RESOLUTION TO OPEN BANK ACCOUNT The board resolution to open a bank account has to be printed on the letterhead of the said business/company. The board resolution has to be signed by two or more Directors of the Company with quorum at a board meeting. In the case of a single person company, the board resolution to open a bank account must be signed by the sole director and the respective shareholders. One copy of the board resolution must be retained with the said company/organization, while the original board resolution is given to the bank where the account is being opened by the said company/organization.
EXAMPLE OF A BOARD RESOLUTION TO OPEN A BANK ACCOUNT