This post covers Corporate Resolution to Open Bank Account.
A Corporate Resolution to Open Bank Account is also referred to as board Resolution to Open Bank Account or LLC resolution to open a bank account.
Here I will explain the meaning of Corporate Resolution to Open Bank Account, shows how to write a Corporate Resolution to Open Bank Account, and samples of Corporate Resolution to Open Bank Account.
Let’s get started;
What is a Corporate Resolution to Open Bank Account?
Corporate or board Resolution to Open Bank Account is a special resolution passed in a valid corporate meeting for the purpose of authorizing the company to open and operate its bank account according to the terms and conditions as agreed by the members of the meeting.
The board resolution for opening a bank account is necessary in addition to the other documents for opening a bank account because a Company is a separate legal entity.
One of the first resolutions passed by the board of directors once the business or LLP is formed is a resolution to open a bank account. If the Company desires to open bank accounts with multiple banks, separate Board Resolutions must be passed for each bank in which an account will be opened.
Read also: Everything you need to know about corporate resolution
How to write Corporate/board Resolution to Open Bank Account?
Board Resolution to open a bank account is written as an extract/minutes of the meeting duly convinced by the company board of directors to discuss the agenda of opening a bank account for the corporation.
Board Resolution to open a bank account must show or must contain
- corporate name and address
- the title i.e CORPORATE/BOARD RESOLUTION TO OPEN BANK ACCOUNT
- the date which the resolution passed
- the purpose of opening a bank account
- the Bank name and address where the account will be opened,
- the name of the account, the signatory
- the corporate seal
Sample 1: Corporate Resolution to Open Bank Account.
The following is the sample of Corporate Resolution to Open Bank Account.
X AND Y ENTERPRISES LIMITED
Of [insert postal and physical address]
CORPORATE RESOLUTION TO OPEN BANK ACCOUNT
- John Smith- Director/chairman
- Isaac Michael- Director/secretary
- Jane Jordan-Director/member
- Harry James- Director/member
- Marry Emanuel – Director/member
The undersigned, being directors of the X and Y enterprises Limited we hereby consent and agree that the following corporate resolution was made on 1/01/2020 03: 30 PM at Grasmere, Staten Island New York City, United States
WHEREAS the chairman reported that arrangements would be made to open a bank account with ABC Bank, X Branch, to enhance the financial operations of the corporation.
In accordance with state law and the bylaws of this corporation, by unanimous consent, the board of directors resolved that:
A bank account in the name and style of X AND Y ENTERPRISES LIMITED should be open with ABC Bank, X Branch, to enhance the financial operations of the corporation.
The following signatories from the corporation are hereby appointed and authorized to jointly and severally act in any reasonable manner whatsoever regarding opening and operation of that Bank account on behalf of the corporation
- Isaac Michael
- Jane Jordan
- Harry James
The corporation shall provide the authorized with a certified copy of this resolution together with all financial and non-financial support as it may require opening the Bank Account.
That the process of opening that Bank account shall start as soon as possible from the date of the meeting.
The Secretary of the Corporation certifies that the above is a true and correct copy of the resolution that was duly adopted at a meeting of the dated meeting of board of directors.
Name___________________________ ___________ Signature of Chairman Date____
Name____________________________ __________ Signature of Secretary Date_____
I feel like the sample alone might not be enough for you.
The following template might add value to what you are looking for.
Sample 2: Board Resolution to Open Bank Account (template)
CERTIFIED TRUE COPY OF THE RESOLUTION PASSED AT THE MEETING OF THE BOARD OF DIRECTORS OF (COMPANY NAME) HELD AT THE REGISTERED OFFICE OF THE COMPANY AT (ADDRESS) ON (DATE) AT (TIME)
A proposal to open a current account with the (Bank Name and Address) was placed before the Board for conducting its day-to-day financial transactions. After discussions, the Board unanimously:
“RESOLVED THAT Current Account in the name & style of ‘(COMPANY NAME)’ be opened with the (Bank Name and Address), for the operations of the activities of the Company and that the following Authorized Signatory(ies) of the Company be and are hereby authorized to open and operate the said account:
- Authorized Signatory
- Authorized Signatory
- Authorized Signatory
- Authorized Signatory
THAT the said Bank be instructed to accept and act upon any instructions relating to the account kept in the name of the Company or relating to any transactions of the Company with the Bank, provided the instructions are signed by the authorized signatory(ies) of the Company in the manner mentioned as above.
THAT the said Bank be instructed to accept receipts for money, deeds, securities or other documents or papers or property or any indemnities given on behalf of the Company provided they are signed by the authorized signatory(ies) of the Company in the manner as mentioned above.
THAT the bank be furnished with a list of the names of Directors of the Company and a copy of the Memorandum & Articles of Association and be from time to time informed by notice in writing under the hand of the Directors/Authorized Signatory of the Company of any changes which may take place therein and be entitled to act upon any such notice until the receipt of further notice under the hand of any Directors / Authorized Signatory.
THAT the resolution be communicated to the Bank and remain in force until duly rescinded and notice thereof in writing be given to the Bank by any of the Directors of the Company.”
“RESOLVED FURTHER THAT the aforesaid power entrusted to the said official shall be valid and effective unless revoked earlier by the Board or shall be exercisable by him so long as he is in the concerned to the Company.”
“RESOLVED FURTHER THAT all acts, deeds, things, matters, etc. as aforestated shall be deemed to be valid and enforceable only if they are consistent with the instant resolution as may be relevant in this case and that the Board shall not be responsible for any acts beyond the scope of the aforestated powers done by (Name of the authorized person(s) and such invalid, illegal acts, and acts done beyond the scope of powers granted in this Resolution shall not bind the Company against any third parties or before any authorities in any manner and that the Board shall not be answerable in that behalf.”
“RESOLVED FURTHER THAT a certified copy of the resolution be given to anyone concerned or interested in the matter.”
For (COMPANY NAME)
Sample 3: Resolution to Open Bank Account sample
Resolution to Open a Bank Account
WHEREAS, the Board of Directors has determined that establishing a banking resolution with BANK is in the best interests of the Corporation, be it:(Bank Name and Address)
RESOLVED, that the Corporation execute and deliver to said bank a duly signed original of the completed banking resolution as annexed thereto, and that the Corporation’s authority to transact business, including but not limited to the maintenance of savings, checking, and other accounts, as well as borrowing, shall be as stated in said resolution, with the named officers therein authorized to act on behalf of the Corporation as specified hereto.
The undersigned declares that he/she is the lawfully elected and competent Secretary, as well as the custodian of COMPANY NAME’s books, records, and seal, a company lawfully incorporated under the laws of the state of [insert state name], and that the preceding is an accurate record of a resolution lawfully adopted by the DIRECTORS/MEMBERS at a corporate meeting held on [insert the time, place and date of the meeting] and that resolution is presently in full force and effect, with no amendments or revocations.
IN WITNESS WHEREOF, I have executed my name as Secretary and have hereunto affixed the corporate seal of the above-named Corporation this [date] [month] of [year]
Sample 4: LLC Resolution to open a bank account
Company Resolution to Open a Bank Account
Account: ______________ Bank: ___________________
Holder: ______________ Address: _________________
As a member of the Company listed herein, I attest that the Company has been incorporated as a Limited Liability Company in accordance with state legislation, with its principal office at____________
I hereby attest that a quorum was present and voted at the Company’s inaugural meeting on _______________, 20___and that the following resolutions were adopted:
1. that the above-mentioned financial institution has been designated as a depository for this Company’s funds, which may be withdrawn on checks, drafts, debit advances, notes, or other requests for payments carrying the signature of any director or approved personnel of this Company.
2. that any checks or debits written against any of the Company’s accounts would be accepted and paid without question by the financial institution. Whether the item has been drawn or endorsed to the order of any authorized officer or employee signing; tendered by the authorized officer or employee for the purpose of cashing or payment; or deposited to the officer’s or employee’s personal account, the financial institution will honor the checks or debits. The financial institution is not required to enquire into the usage of any cheque or debit card signed in line with these decisions.
3. that the officers or authorized employees may enter into other agreements, such as special depository agreements and arrangements regarding the manner, condition, and/or purposes for which the Company’s funds, checks, debits, or items may be deposited, collected, or withdrawn, as long as these other agreements do not conflict with the provisions of this resolution.
4. that the authority given to the Company’s officers or authorized personnel will remain in full force and effect until the financial institution receives written notice at each location where an account is kept. By continuing to operate in accordance with this resolution, the financial institution will be compensated and kept harmless from any losses or obligations incurred.
I also attest that the individuals listed below hold the positions indicated by their signatures, that the resolutions included in this document are registered on the Company’s books, and that they are in full force and effect and have not been changed in any manner.
I Agree to all of the above on this ______ day of ___________________________, 20________.
CERTIFIED TO AND ATTESTED BY: Isaac Newton (Company Secretary)
- Niller Clemency – Director/chairman
- Isaac Newton- Director/secretary
- John Brown-Director/member
- Hellen James- Director/member
- Marry Emanuel – Director/member
sample 5: Board Resolution For Opening Of Bank Account
CERTIFIED TRUE COPY OF THE RESOLUTION PASSED AT THE BOARD OF DIRECTORS MEETING OF [Name of Company], HELD AT [Address], ON [Date].
Mr./Mrs. [Name of Director] notifies the board that in order to effectively manage cash flows and corporate finance, as well as to ensure the smooth operation and expansion of the business, the company must open a bank account in any public or private bank.
RESOLVED THAT the board of directors approves the opening and operation of a bank account in the name of the corporation with [Bank Name] at [Branch Name]
RESOLVED FURTHER THAT Mr./Mrs. [Name of Director] and Mr./Mrs. [Name of Director] directors of the company are hereby authorized to operate a bank account, issue and receive checks and payments, use internet banking and other allied banking services, and submit documents and information to the bank on behalf of the company.
RESOLVED FURTHER THAT a copy of this resolution be submitted to the Banker, under the seal and signature of any of the company’s directors, as may be needed.
TRUE COPY CERTIFIED
For [Company Name],