Board Resolution for the Closure of Bank Account

It is just as important to obtain a board resolution during a meeting comprising of the board of directors for the closure of a bank account as it is for having opened the same. Given the legal status and responsibilities of a company, it becomes necessary to follow the procedures of holding a board meeting and discussing with the directors as well as the staff responsible for the opening and handling of the bank account to compile all the necessary information, history of all the transactions as well as proper records of the same. During this meeting the reason for the closure of the bank account is discussed and noted and the points have to be agreed upon by the majority of the decision makers just as in any board meeting. Following the preparation of documentation of the board resolution for the closing of the bank account, this is printed out using the letterhead of the company and submitted along with the other documents and forms required for closing the bank account. The account number and details of the account such as its opening date and the name of the company it was issued for is mentioned clearly as a part of the resolution. It is proposed to the bank that following the rules of bankers insurance, any amount that remains in the bank account be returned to the company which can either be paid directly to the company using a cheque or transferred to the new bank account set up by the company. 

This board resolution also requires the authentication in the form of the signatures of more than one or all of the directors of the company expressing their agreement towards the closing of the bank account.

 

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