board resolution

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sreenu (Querist)
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19 October 2009 is board resolution necessary for opening for bank account to a public company under indian compamies act

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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19 October 2009 Yes it is compulsory otherwise Bankers will not open the account.

sreenu

sreenu (Querist)
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19 October 2009 thanks sir,, but under which provision

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Taranjit Singh

Taranjit Singh (Expert)
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19 October 2009 Prepare a corporate resolution. This may be only the first of many corporate resolutions you'll create in the future. This document will specifically state the individuals and officers permitted to act for the corporation in banking matters. These people can sign checks, open accounts, transfer money, invest funds and perform all other banking necessities under their signature(s). You may give these individuals complete authority to act for the corporation, or authorize one or more people to commit the company in some cases, but not others. The corporate resolution advises the bank of your authority wishes and its responsibilities to respect them.

sreenu

sreenu (Querist)
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19 October 2009 thanq u , is there any provision saying that resolution is must?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 October 2009 Yes. Pl go through section 35A of the Banking Regulation Act,1944 read along with Guidelines on KYC norms vide notification of RBI DBOD.AML.BC/8/14.01.001/2002-03 dated 16/08/2002 with particular reference to clause 2.1(ii).

sreenu

sreenu (Querist)
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19 October 2009 thanq u sir