Board Resolution for Bank Authority

Description

A Board Resolution for Bank Authority is a formal document issued by the board of directors of a company, granting authorization to specific individuals to act on behalf of the company in banking matters. This resolution is essential for ensuring that the bank has clear, legal evidence of who is authorized to operate the company’s bank accounts and perform other financial transactions.

Key Features

1. Authorization: Specifies the individual(s) authorized to handle banking operations, such as opening or closing accounts, signing cheques, or availing credit facilities.
2. Scope of Authority: Details the limits of the assigned powers, ensuring clarity in the responsibilities entrusted to the authorized person(s).
3. Legal Compliance: Aligns with the company’s Articles of Association and statutory requirements, making it legally binding.
4. Clarity and Precision: The resolution includes the date, meeting details, and a clear decision to avoid ambiguity.

Structure of the Resolution

1. Heading: “Board Resolution for Bank Authority”
2. Company Details: Name of the company and registered office.
3. Resolution Text: Clearly state the authorization details, including the name and designation of the authorized individual(s), and the specific powers granted.
4. Meeting Details: Date, time, and place of the board meeting where the resolution was passed.
5. Signatures: Signed by the chairman or authorized signatory of the board.