For Accounting Opening

For Account Opening

For Accounting Opening: Limited Company

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A limited company may open an account with a Bank only if it is authorized to do so by a resolution of the Board of Directors of the Company. Further the resolution must specify the titles/designation of the officials authorized to open/ operate the account, the extent of their authority and the manner in which the account will be operated.

For Accounting Opening: Limited Company A certified true copy of each of the following documents must be obtained from the Company: • Board Resolution, Certificate of Incorporation and Certificate of commencement of business in case of public limited company. • Extract of the Minutes of the Directors' meeting authorizing the opening / and operating the account. • Memorandum and Articles of Association of the Company. The Memorandum and Articles of Association should be carefully read to establish that the company is authorized to engage in such a business and that the persons empowered to act have been duly appointed in terms of the same.

Local Authorities and Municipal Corporations : •

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Normally the authority to open a Government Account is received from the appropriate authority level and through their respective ministries. S. S. Card will be obtained in respect of all officials who will sign on that account and these should be duly authenticated. The ministry should be requested to specify the signing authorities in respect of each of the signatories. The Account Opening Officer must ensure that the official(s) making the request for the opening of the account are properly authorized by the appropriate government authority. Cheques favoring such accounts shall not be collected for credit of the personal account of the office bearers or other employees. Due to the critical nature of the charter and resolution of such bodies, due care should be exercised in case of opening of such accounts.

Trust Accounts •

On opening the account, a certified true copy of the Trust Deed will be retained along with the AOD. It must be noted that the Trustees do not have any authority to delegate their function to anyone else unless so stated in the Trust Deed. Further, unless otherwise stated in the trust deed, all trustees must sign all the necessary documents for the operation of the account i.e. cheques, letters regarding instructions to the Bank, etc.

Accounts of Executors and Administrators ` The following precaution should be strictly adhered to: • Branches must not open the accounts of the executors and administrators without pre facto permission from the Head Office. • No withdrawal shall be allowed in absence of judicial authorities, however, deposits can be made. • The account shall not incorporate the name of the deceased’s estate, for example; “Law Firm Executor/ Administrator of the Estate of the Deceased”. • The AOF should be signed by all the executors, to whom the probate has been granted by a competent court or by all the administrators if there is more than one administrator. • When opening the account, the probate or the letter of administration should be registered with the bank by the executors / administrators and an attested copy thereof should be retained with the AOF. Also establish the identity of the executors / administrators. • When opening the account, clear instructions to determine which of the executor (s) / administrator (s) is/are authorized to operate the account should be obtained under the signatures of all the Executors / Administrators, if there is more than one Executor / Administrator.