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A corporate resolution for a bank account is a statement listing the names of officers authorized to do business on the corporation's behalf. Corporations need bank accounts to create a separate holding place for money associated with their business, and banks must know who represents the corporation as they do business together. The exact format for this document can depend on the financial institution and the region. Companies unsure about how to proceed can consult a bank or discuss the situation with an attorney.
Some banks have a blank form they ask corporations to fill out. The form typically contains fields for all the necessary information, including the name and address of the company and a statement about when it was incorporated. Any officers authorized to handle the corporation's banking must be listed. Banks can also ask for verifying information, like photos, to attach to the document. This ensures that the bank knows who can authorize activity on the account and can verify the identity of anyone who claims to have authority.
In other cases, it is necessary to draft a corporate resolution for a bank account. An attorney can help with this process, and self-help law books can have examples or templates as well. It is important to use a form appropriate to the region, as laws for handling corporations can vary. A bank officer may be able to assist with this process, as the bank has an interest in making sure the form is filed and complete so it can start doing business with the company.
When corporate officers change, it is important to update the document. This prevents situations where people abuse their credentials to withdraw or transfer funds. It is also possible to put a hold on the account, just as with personal accounts, while members of a corporation resolve a dispute. Keeping money secure during disputes can be important for legal reasons, like a desire to avoid penalties from creditors.
Banks may not require a corporate resolution for an account if the names of the officers are listed in the articles of incorporation or other documents pertaining to the formation of the company. The copy of the articles may be sufficient to meet the needs of the financial institution. A representative can advise members of the company about their options and whether they need a resolution to start banking.
In a lot of corporations -- particularly nonprofit ones -- those officers can change on a yearly basis. That means a new resolution has to be drawn up every single year and it can be a hassle.
With the technology now available, the process should be a bit easier. Is there an easier way to handle this than to chase down a bunch of officers and get their signatures on the same document at the first of every year?