Resolution for Bank Accounts

For opening Bank Account, Bank insist to Board resolution. It means Board authorising to open an account , authorising persons and limits  on behalf of the company.

In the same way Bank insist authorisation through resolution for closing a bank account as well.

Hence Bank insist Board approval for open/closure of account.

Usually Bank  does not close  account unless submission of resolution..

If resolution not passed for closure of account,  u can pass ratification  and note the same.

I completely agree with Nagesh. As Bank would insist Board resolution for opening the Bank Account, in the same way Bank Would insist Bank resolution for closure of Account. As the  case in the current post is related to closure of Bank Account which is non operative and the bank has closed the account for the same reason,the Board  may ratify the act of Bank and a resolution can be passed to that effect and the same can be noted.Passing resolution is a good secreterial practice.

My point of view.

Experts opinion may be taken.

With best wishes,

I have a different opinion on this. What will u ratify through Board Resolution??? Ratification is for the acts done without authority. Here in this case nothing has been done beyond authority by any officials or the Company. The acounts which were non operative since long have been closed by Bank as per their norms.

This matter is only to be brought to the notice of Board. Therefore, taking note of the same is enough.

Completly agree with Gurmukh. Resolution are passed to empower someone to do some action. But if the third party (here bank) has already taken an action, the company can only do the noting of closure only. yes, if company wishes to take any action against such closure, then BR is required.

Thanks for the opinion...

I have the same opinion...that now passing the Board resolution will be of no use.

According to me for all non operative accounts we can take the resolution and for bank accounts which are already closed by bank... we can obtain letter from bank for the such closure. I mean stating the reason and the action taken by them(i.e closing the bank account) and also the action taken for the balance amount lying with them, and the same letter can be place before the board for noting.

Kindly let me know the opinion on this.

regards,

Hemali

Originally posted by : Hemali
	Thanks for the opinion... I have the same opinion...that now passing the Board resolution will be of no use. According to me for all non operative accounts we can take the resolution and for bank accounts which are already closed by bank... we can obtain letter from bank for the such closure. I mean stating the reason and the action taken by them(i.e closing the bank account) and also the action taken for the balance amount lying with them, and the same letter can be place before the board for noting. Kindly let me know the opinion on this. regards, Hemali

 Hello Hemali,

I  Agree to Gurmukh & Sudhir.

But Banks before closing bank accounts though in-operative would intimate the company.

It cannot take solo action, as they are current accounts and transactions can take place as and when there is

Business activity. But if they have not intimated then, as stated

by you proceed to collect the letter and reason of closure and take note of the same in the board meeting,

and record in your minutes.

regards

Santosh Shah