Sometimes it becomes necessary to close the bank account of a private limited company for various reasons. Here are the possible reasons a company might want to close its bank account.
Reasons for closing a bank account of a company
1. The company is closing down or ceasing operations, so there is no longer a need for the account.
2. The private limited company is merging or consolidating with another company and the bank account of one of them needs to be closed.
3. The company wants to use a new banking institution for its finances and hence it wants to close the account in the older bank.
4. The company has discovered fraud or unauthorized transactions in the bank account and wants to close it to prevent further losses.
Board Resolution For Closing The Current Account Of Company
Here is a sample board resolution to close the bank account of a private limited company. You can modify it to your needs and copy and paste it in a word document to print or download the document as a PDF to use it in a portable format.
CERTIFIED TRUE COPY OF THE RESOLUTION PASSED AT THE MEETING OF THE BOARD OF DIRECTORS OF XYZ PRIVATE LIMITED HELD AT THE REGISTERED OFFICE OF THE COMPANY AT [ADDDRESS] ON [DATE] AT [Time] AM
WHEREAS, XYZ Private Limited (the "Company") currently maintains a bank account with Bank of Baroda, City, District, State (the "Bank");
WHEREAS, it has been deemed necessary by the Board of Directors of the Company to close the said bank account in the interest of the Company;
NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the Company hereby authorises [Director Name], Director of the Company, to close the bank account of the Company maintained with the Bank of Baroda, and to take such other actions as may be necessary to effect the closure of the said bank account, including the submission of any required forms and documents to the Bank, and providing any information or undertaking as may be required by the Bank.
BE IT FURTHER RESOLVED, that the Director so authorised is also empowered to sign and execute any and all documents, agreements, and/or letters necessary to effect the closure of the bank account and to take any other steps necessary to give effect to this resolution."
“RESOLVED FURTHER THAT a certified copy of the resolution be given to any one concerned or interested in the matter.”
For : XYZ PRIVATE LIMITED
[Director Name]
{Director Seal]
DIRECTOR
You can use this sample board resolution to close the current bank account of a private limited company and modify it to suit your needs.
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