Bank signatory

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    Bank signatory

    I appreciate it's Company Law but ..... Can a director become a bank signatory without the approval of the majority of the board of directors ? Help appreciated.

    #2
    There are 2 separate issues to your question.
    Whether or not a bank mandate can be completed or changed by one director depends on the bank. I believe that they would normally require a copy of the directors' minutes when setting up or changing a mandate. The majority of directors can obviously decide to change the mandate if necessary.
    The second and more important issue is whether or not the director is acting within his authority. The board of directors may need to warn him, reprimand him, suspend him and/or ask the members to remove him as a director if he is acting without the authority and without seeking the approval of the majority of directors.

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      #3
      Thanks eagle, very informative. An additional query please. Can signatories be approved by e-communication or does it require a physical meeting ?

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        #4
        I think that it depends on the Bank and I can only suggest that you enquire directly. They used to require you to visit a branch and produce id and proof of address etc but they may be more flexible these days.

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          #5
          Thanks eagle. My wife says I don't make myself clear !

          What I was meaning was for the Company to authorise someone to apply to be a signatory. Does it have to be a physical meeting or can they agree by email ?

          Sorry for my previous post.

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            #6
            ok I am with you. The directors can arrange to meet in any way that they choose eg by telephone conversation, email exchanges, Zoom etc, it does not need to be a physical meeting. They can also reach decisions by any means they choose, word of mouth, show of hands, email etc. although it is preferable if there is a permanent record of the voting in case of dispute, They are required to keep minutes of directors' meetings which should contain a record of decisions made. So to answer your question, yes, the directors can agree by email to authorise someone to become an authorised signatory.

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              #7
              I appreciate your patience. Thanks for such a clear and comprehensive response.

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