Board Resolution for Opening a Bank Account

Once a company has been set up, it becomes important to open a new bank account exclusively for the company which is impersonal and accounts for all the finances of the company and its revenues. This new bank account requires a board resolution which is usually decided in the first board meeting of the company and signed by someone in direct power over the company such as any of the directors of the company. During this meeting I set of people typically from the accounts department are assigned the duty and responsibility of opening as well as maintaining the official bank account for the company and providing timely reports and statements of all the transactions carried out using this bank account. Keeping in mind that a company is a separate legally bound entity, a whole new document for the resolution of the board becomes necessary in addition to all the other documents that have to be procured by the company for setting up this bank account as well as other functions. In case where companies have to set up multiple bank accounts over various banks for reasons including security, these companies must have separate board resolutions for each of these bank accounts- being legally bound to do so. Setting up the board resolution for the bank account assigns it’s official classification as either a private company (one person), a private limited cooperation or a limited company- an identity that is most necessary for the company in all aspects. The final board resolution is printed along with details of the company and using the company‘s letterhead and provided the bank prior to the opening of the bank account. A copy is ideally distributed to the directors as well during the completion of the first board meeting of the company along with the minutes.

 

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