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Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2011 bank account opened before incorporation is valid or what are the consequences pertaining to that

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 May 2011 Before incorporation, Bank account can not be opened as the Bankers will demand from you the copy of AOA & MOA, as well as Board Resolution, PAN No etc.

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2011 No i have come across examples in real situation what are the consequences

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 May 2011 My reply is in connection with the bank account of a company which has opened a Bank A/c prior to incorporation.

The matter may create serious consequences for the responsible officer of the Bank. Pl. do not disclose the name of the Company and its Banker.

However, in the first board meeting if the directors ratify the transaction entered, even, prior to incorporation, effect in the accounts of Company can be given subsequently.

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