Board Resolution for Opening of Bank Account

Board Resolution for Opening of Bank Account: A Draft

What is this resolution for?

The specimen of board resolution provided in this blog is for the opening of any bank account of a Company. The resolution for the opening of a bank account requires prior approval of the Board of Directors.

Key points

  • The Board resolution should include the details of authorized signatories along with their authority to operate the bank account.
  • The Board resolution can also be passed through circulation in compliance with Section 175 of the Companies Act 2013.
  • The certified true copy of the resolution can be forwarded by any director or Company Secretary.

Draft Board Resolution for Opening of Bank Account

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


Agenda Proposal

(Name of the Bank) has sanctioned various credit facilities to the Company. It is proposed to open a Cash Credit/Overdraft Account/Escrow Account/Current Account with (name of the Bank) for the smooth conduct of business operations of the Company.

The Board members may discuss and approve the following resolution.

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)

RESOLVED THAT consent of the Board be and is hereby accorded to open a Cash Credit/Overdraft Account/Escrow Account/Current Account in the name and style of M/s (Name of the Company) with (Name of the Bank) at (Name of Branch).

RESOLVED FURTHER THAT Mr./Ms (Name of Director/Officer) or Mr./Ms (Name of Director/Officer) be and are hereby singly authorized to sign and deliver necessary application forms, to accept, sign, execute, deliver and complete all documentation, agreements, and other documents therefor and do all acts and deeds as may the Bank may require in connection with opening / activating the above Account.

RESOLVED FURTHER THAT the Company do accept the terms and conditions applicable for the Cash Credit/Overdraft Account/Escrow Account/Current Account as may be contained in the application forms and displayed on the website of the Bank or any other terms and conditions as may be notified by the Bank from time to time in connection with the provision of products and services offered in respect of the Cash Credit/Overdraft Account/Escrow Account/Current Account.

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.

RESOLVED FURTHER THAT 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.

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 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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