Board Resolution for Closure of Bank Account

Board Resolution for Closure of Bank Account: A Draft

What is this resolution for?

The specimen of board resolution provided in this blog is for the closure of any bank account of a Company. When a Company decides to close any of its bank accounts, it needs to pass a resolution in a board meeting.

Key points

  • The authority to close the bank account should only be given to the authorized signatories of the company who deal with the relevant bank account.
  • The certified true copy of the resolution can be forwarded by any director or Company Secretary to the concerned bank.
  • The board resolution should also mention that the balance lying in the relevant account be returned to the Company.

Draft Board Resolution for Closure of Bank Account

Given below is a format of BR for the closure of any bank account of a Company.


Agenda Proposal

The Cash Credit/Current/Escrow Bank account of the Company maintained with (name of the Bank) is no longer required for the business operations of the Company. It is proposed to close the said bank account. 

The Board members may discuss and approve the following resolution.

On Company Letterhead

Board Resolution

CERTIFIED TRUE COPY OF THE RESOLUTION PASSED AT THE MEETING OF THE BOARD OF DIRECTORS OF (COMPANY’s NAME) HELD AT THE REGISTERED OFFICE OF THE COMPANY AT (ADDRS.) ON (DATE) AT (TIME)

RESOLVED THAT the consent of the Board be and is hereby accorded for closure of the Current/Cash credit/Escrow Account (Account Number) maintained with (Name of the Bank), (Branch) and the Bank be instructed to refund the balance amount lying in the said account in cash/cheque.

RESOLVED FURTHER THAT Mr./Ms. (Name of Director/Officer), and Mr./Ms. (Name of Director/Officer) be and are hereby severally authorized to sign and execute all such documents, papers, and writings and to do all such acts, deeds, matters, and things as may be necessary, proper, expedient, or incidental for the closure of the above bank account.

RESOLVED FURTHER THAT Mr./Mrs. (Name of Director) and Mr./Mrs. (Name of Company Secretary) be and are hereby severally authorized to certify and forward a copy of the above resolution to (Name of the Bank).”

___________________________________________________

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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