Suspension of operation of bank account of pvt company

girish parmar (Querist) 10 October 2012 This query is : Resolved
We are a Banker. Our Bank has assisted a Pvt. Company. The Private Co. has vide Bd Resolution severally authorised Two of its Directors (by name) for operation of Bank account of the Company. The Co. has four other Directors who have now written letter to the Bank to suspend operation of Bank account of the Company. These four Directors name does not appear in the Board Resolution. However they are the Directors in the Company. Whether the Bank should suspend the account? If no then what are the safeguard the Bank should take to defend against these four Directors who have given legal notice?

Follow Query

Report Abuse

Devajyoti Barman (Expert) 10 October 2012
Without validly passed Board Resolution, the Directors can not take such important decision.
So ask for Resolution from them and then act accordingly.

Guest (Expert) 10 October 2012
Board resolution is the only authority for the bank to act upon. If you act upon the instruction of any one else other than on the authority f the bank, you should also be ready to face the consequences of creating hurdles of the operation of the company. Reply them to produce board resolution duly passed by the majority of board directors in support of their request.

If not posible for them to produce a board resolution, they should produce an order from the competent court to suspend the account of the company.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now