Board Resolution for Change in Authorised Signatory in Bank: A Format
What is this resolution for?
The specimen of board resolution provided in this blog is for changing the authorised signatory in the bank accounts of a company. A company may either change its authorised signatories on account of the resignation of employees or it may even appoint new additional signatories to its bank accounts. For passing a resolution for this, the approval of the Board of Directors is needed.
It should be noted that on change of authorized signatory, the specimen signatures of the new signatories have to be submitted to the Bank along with the certified true copy of the resolution.
Draft Board Resolution for Change in Authorised Signatory in Bank
Given below is a format of Board Resolution for effecting Change in Authorised Signatory in a company’s bank:
On Company Letterhead
Board Resolution
CERTIFIED TRUE COPY OF THE RESOLUTION PASSED BY THE BOARD OF DIRECTORS OF (NAME OF COMPANY) IN ITS MEETING (S.NO) HELD AT (VENUE OF BOARD MEETING) ON (DATE) AT (TIME)
The Chairman informed the Board that on account of the resignation of Mr. ……. (Designation) who was an authorised Signatory to the Cash Credit/Overdraft Account/Escrow Account/Current Account of the Company bearing No.……………… opened with (Name of the Bank) at (Name of Branch), it was proposed to change the authority to operate the said Bank Account with the removal of Mr. ……. (Name of the old authorised signatory) and addition of Mr. ………. (Name of the new authorised signatory).
The Board discussed the matter and after deliberations, it was:
“RESOLVED THAT in supersession of resolution no ……. passed by the board of directors in its meeting no…………held on ……………………., in respect of Cash Credit/Overdraft Account/Escrow Account/Current Account of the Company bearing No.……………… opened with (Name of the Bank) at (Name of Branch), the Bank be instructed to honor all cheques, promissory notes, and other instruments drawn by and all bills accepted on behalf of the Company, so long as the Account is in credit balance or within the overdraft limit, where overdraft facility is provided by the Bank in respect of the Account, and which are endorsed/signed/issued by the below mentioned authorized signatories of the Company for the time being, severally on behalf of the Company and such signature(s) shall be sufficient authority to bind the Company in all transactions between the Company and the Bank including those specifically referred to herein.
RESOLVED FURTHER THAT the Bank be instructed to accept and credit to the Account all sums of money deposited with it or collect and credit into the Account all cheques that are deposited and notes, bills, other negotiable instruments, orders, or receipts in the name of the Company that are endorsed/signed/issued by the below mentioned authorized signatories of the Company for the time being, severally on behalf of the Company.
a) Individually, by any of the following, without any limit/up to a limit of Rs.
- Mr./Ms (Name of Director/Officer)
- Mr./Ms (Name of Director/Officer)
b) Jointly, by any two of the following, without any limit/ up to a limit of Rs.
- Mr./Ms (Name of Director/Officer)
- Mr./Ms (Name of Director/Officer)
- Mr./Ms (Name of Director/Officer)
RESOLVED FURTHER THAT this resolution be communicated to the bank along with specimen signatures of authorized signatories, and this resolution shall remain in force until duly rescinded and notice thereof in writing be given to the bank by the Company.
RESOLVED FURTHER THAT a Certified True Copy of this Resolution be furnished to the Bank and/or such persons/entities as may be deemed fit by Mr./Mrs. (Name of Director) or Mr./Mrs. (Name of Company Secretary).”
___________________________________________________
For (COMPANY’s NAME)
(Name of Director)
Director
DIN: ___________
Date: ___________
Note: The resolution given above is only for reference purposes and it should be used only after adhering to the provisions of the relevant Acts and rules (if any) that may be applicable for the time being in force.
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