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Resolution for closure of current account

S.Jagadeesan (Trainee) (25 Points)

20 May 2013

Whether resolution for closure of a current account is necessary in case of a private limited company OR request letter is enough.

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2 Replies

Sneha (Company Secretary) (1594 Points)
Replied 20 May 2013

Bank will require a resolution signed by directors for closure of current account.

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Sneha (Company Secretary) (1594 Points)
Replied 20 May 2013

CLOSING OF BANK ACCOUNT

The Chairman informed the Board that the Company’s Bank Account with __________ Bank is proposed to be closed. After some discussions, it was :-

“RESOLVED that

(a) That an account in the name of the ( company name ).” be closed with _______ Bank, ______ Branch and Mr. ________, Director of the Company be and is hereby authorized to do so and sign the necessary forms and documents therefore.

(b) And that a copy of any resolution of the Board if purporting to be certified as correct by any of the Director of the Company shall, as between the Bank and the Company, be conclusive evidence of the passing of the resolution so certifies.

(c) And that this resolution be communicated to the bank as shall remain in force until notice in writing of its withdrawal or cancellation is given to the Bank by the Company.