How to write a board resolution letter – sample to open a bank account
When you have a company with a board of directors, it is often the case that a member of the board will be designated to administer the finances of the group. The person will be able to open account in the name of the company and withdraw funds. This is often done to make sure the company functions smoothly and to ensure that financial issues are resolved efficiently. Banks and other financial institution need a way to ensure that the person who comes in to open a bank account in the name of a given company is authorized to do so. That is why most banks will require a board resolution letter to open a bank account.
The basic idea behind such a letter is that it contains clear and specific information about the power that has been bestowed on the designated person to act in the name of the company. There are no hard and fast rules as to how you should structure your sample board resolution letter to open a bank account. That said, your letter must include the following information.
Name of company and any information related to its official registration (chamber of commerce) and tax information.
Reason for the letter: Board resolution to open a bank account
Name of designated person: Director of Finance or Managing Director
Authority Granted: Open bank account, deposit funds, withdraw funds and authorize and designate employees to perform financial transactions on the company’s bank account.
Signature of designated person
Signature of board members
The authority granted in the above little sample board resolution letter to open a bank is very important. The director designated to open the bank account should also be authorize to give junior employees access to the bank account. This is important for those employees working in payroll who have to access the bank account to pay wages.
The law in every country is different and many banks operate in different ways. However, the information provided above should give anyone looking for a board resolution sample letter for a new bank account an idea of what to include. If you are unsure, you can contact the local branch of the bank and ask for more guidelines. At times, the bank already has a form that can be filled out by the board of directors and you don’t have to bother with writing a separate letter of resolution.