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Rules relating to Fixed deposits in bank in name of Company
24-Aug-2023 (In Corporate Law)
I am one of the director of my Pvt Ltd company. If I make a fixed deposit in the name of my company in the bank with only my signature on it..does the other director of the company have the right to break the fixed deposit in the company's name and draw the money from the bank???
Dear Querist,
To open a company fixed deposit account, articles of association, company registration certificate, business licenses, list and names of board of directors, board of directors meeting records and resolutions to open the account, names of persons who will make paying-in and withdrawal for and on behalf of the company and their specimen signatures and company stamps – all these will have to be brought to the bank.
Therefore, by no means you can have sole authority and/or right to any property of the company (movable or immovable) because the authorized signatory powers of anyone acting on behalf of the company can be changed anytime through the resolutions passed by the Board of the company.
To open a company fixed deposit account, articles of association, company registration certificate, business licenses, list and names of board of directors, board of directors meeting records and resolutions to open the account, names of persons who will make paying-in and withdrawal for and on behalf of the company and their specimen signatures and company stamps – all these will have to be brought to the bank.
Therefore, by no means you can have sole authority and/or right to any property of the company (movable or immovable) because the authorized signatory powers of anyone acting on behalf of the company can be changed anytime through the resolutions passed by the Board of the company.
Helpful?
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Adv. Sohail Haque
Kolkata | 25+ Answers
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