What is Board of Resolution Banking?

23Nov, 23

What is Board of Resolution Banking?

When a firm wishes to open a business bank account, it must first pass a board resolution, which is known as a board resolution for bank account opening. This document gives someone in the company the authority to open a bank account on the firm's behalf. It is usually one of the first resolutions passed after a company is incorporated, and it is the obvious next step after launching a business.

The following are the main components of a board resolution for opening a bank account:

  • Details about the company: name and address
  • Information about the board meeting (only if using board minutes)
  • Resolution's effective date
  • Name and address of the bank with which the business is attempting to open a business account
  • The names and positions of authorized individuals who have access to and control over the company's bank account.
  • A statement indicating whether or not joint signatures are required for any given transaction.
  • Signatures and dates must be certified.
  • Seal of the company

The Board Resolution must be printed on the company's letterhead and signed by officially authorized Director(s), Officer(s) of the firm, along with the business's official seal.