plz provide me a pvt. company resolution for investment IN BANK FDR
CA rohit swami (CHARTERED ACCOUNTANT) (262 Points)
20 April 2013plz provide me a pvt. company resolution for investment IN BANK FDR
CA CMA CS Ram Pavan Kumar Melam
(CA)
(6980 Points)
Replied 21 May 2013
For opening of a bank account a board resolution is required, since operating of bank account involves several issues such as persons who required to operate the account, joint or several signatures, instructions including opening or closing FDs etc which the Board collectively resolves in its decision. A person is authorised to operate the account of the company can open or close FDs.
Companies Act specifies in certain cases where such transaction needs to be decided in a duly held meeting of board / members such as appointment of auditors, cost auditors, shifting of regd. office, amendmendment to MOA and AOA etc. In such cases, if resolution no means, there is no transaction at all.
Hence, if you are establishing a new relationship with the bank then a separate Board Resolution would be required.
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