Pvt ltd company is transferring its fds from one bank to another in different city.Is there any resolution required?
In which transactions resolution is required? what if resolution is required and company did not pass resolution?
1 Replies
CA CMA CS Ram Pavan Kumar Melam
(CA)
(6980 Points)
Replied 17 May 2011
fds you mean Fixed Deposits? For opening of a bank account a board resolution is required, since operating of bank account involves several complex issues such as persons who required to operate the account, joint or several signatures, several other instructions including opening or closing FDs etc which the Board collectively resolves in its decision. A person is authorised to operate the account of the company can open or close FDs.
Hence, if you are establishing a new relationship with the bank then a separate Board Resolution would be required.
Companies Act specifies in certain cases where such transaction needs to be decided in a duly held meeting of board / members such as appointment of auditors, cost auditors, shifting of regd. office, amendmendment to MOA and AOA etc.
If resolution is not passed means, there is no transaction at all.
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