This post covers Corporate Resolution To Open Bank Account.
A corporate resolution to open a business bank account is a legal document that identifies the person with the authorization to open and operate a bank account on behalf of the corporation.
Depending on the circumstances a Corporate Resolution To Open Bank Account is also referred to as a board Resolution to Open Bank Account or an LLC resolution to open a bank account.
Drafting a proper resolution for a bank account is not easy especially if you are doing it for the first time.
To help you handle this huge legal responsibility, here I will take you through;
- the meaning of Corporate Resolution to Open Bank Account
- how to write a Corporate Resolution to Open Bank Account
- sample of Corporate Resolution to Open Bank Account
- Board Resolution to Open Bank Account (template)
- LLC Resolution to open a bank account
- corporate resolution to open bank account free pdf download
Here I will only cover Corporate Resolution to Open a Bank Account, if you want to have a wider understanding as far as corporate resolution is concerned, you may read this guide that teaches Everything you need to know about corporate resolution.
Let’s get started;
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What is a Corporate Resolution to Open Bank Account?
A Corporate or board Resolution to Open Bank Account is a special resolution passed in a valid corporate meeting to authorize 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 for 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.
How to write a Corporate/board Resolution to Open Bank Account?
The 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 on 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
Corporate Resolution To Open Bank Account
The following is a sample of Corporate Resolution to Open a 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 X and Y enterprises Limited 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.
By 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 opened 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 the 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 the 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.
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 is 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 is 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)
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]
LLC Resolution to open bank account
LLC ((limited liability company) resolution to open bank account is a formal document that is adopted by the members or board of directors of the LLC.
It should outline the details of the bank account, including the name and location of the bank, the type of account being opened (e.g. checking, savings, etc.), and the names of the individuals authorized to access the account.
The resolution should be formally adopted by the LLC and should be kept with the LLC’s records.
Here is a sample resolution
LLC Resolution to Open a Bank Account
WHEREAS, XYZ, LLC (the “Company”) is a limited liability company organized and existing under the laws of the State of [State];
WHEREAS, the Company desires to open a bank account at [name of bank] located at [address of bank] (the “Bank”) in order to facilitate the conduct of its business;
NOW, THEREFORE, BE IT RESOLVED by the members/board of directors of the Company (the “Governing Body”) as follows:
- The Governing Body hereby authorizes the opening of a [type of account] account at the Bank, to be titled in the name of the Company.
- The Governing Body hereby authorizes the following individuals to access the account on behalf of the Company:
[Name of Authorized Individual 1] [Name of Authorized Individual 2]
- The Governing Body hereby authorizes the Authorized Individuals to execute any and all documents and agreements necessary to open and maintain the bank account, including but not limited to signature cards, account agreements, and other related documents.
- This resolution shall be effective immediately and shall remain in effect until revoked by the Governing Body.
IN WITNESS WHEREOF, the undersigned, being the duly authorized member(s)/director(s) of the Company, have executed this resolution as of the date and year below.
[Date] XYZ, LLC By: [Name of Authorized Signatory] [Title of Authorized Signatory]
- Miller Clemency – Director/Chairman
- Isaac Newton- Director/secretary
- John Brown-Director/member
- Hellen James- Director/member
- Marry Emanuel – Director/member
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 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],
Corporate resolution to open bank account pdf