Directors' Resolution for Bank Account Opening

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What is it?

As a limited company is a separate legal entity, it requires its own bank account. A Directors' Resolution for Bank Account Opening is a resolution required to be passed by the directors of a company to open a company bank account. The resolution also specifies the individuals who have the authority to use and operate that account. If a company wishes to have bank accounts with various banks, then a separate board resolution must be executed for each respective bank account.

The directors' resolution can be passed at a directors’ board meeting or by way of a written resolution.

 

Why do you need it?

If you choose to have a meeting of the board of directors to pass this resolution, it is necessary to record the minutes of this meeting. You will therefore need a Board Minutes for Bank Account Opening. Alternatively, the board resolution can be passed by way of a written resolution using a Board Resolution for Bank Account Opening.

Key clauses to watch for:

When drafting a Directors' Resolution for Bank Account Opening, it is important to focus on a number of key clauses, in particular:

  • Details of the meeting (if using Board Minutes);
  • Date of passing the resolution;
  • Name of the bank in which the account is being opened;
  • Authorised individuals who may use and operate the bank account; and
  • Whether joint signatories are required for any specific transactions.

Directors' Resolution for Bank Account Opening Document