Account Opening Resolution

An Account Opening Resolution is an official document passed by the board of directors of a company or by the partners of a firm authorizing designated individuals to open and operate a bank account on behalf of the organization. It is a critical requirement for banks to ensure proper authorization and accountability.

The resolution typically includes the name of the organization, type of account (current, savings, etc.), name(s) of authorized signatories, their designation, authority to sign cheques or operate the account, and the bank branch where the account will be opened. It may also specify whether signatories can act individually or jointly.

Account Opening Resolutions are commonly required by companies, LLPs, partnerships, and other entities while opening a new bank account or updating account authority. It ensures that the bank recognizes the authority of the designated individuals to manage funds, sign cheques, and carry out banking operations legally.

The resolution protects the organization, provides clarity on authority, and prevents unauthorized transactions. It also serves as a legal document in case of disputes or audits, ensuring compliance with banking and corporate regulations.

In conclusion, an Account Opening Resolution is an essential corporate document that authorizes designated individuals, ensures proper governance, and enables seamless banking operations for the organization.