Opening a bank account
Vijaya Bhaskar
(Querist) 12 March 2023
This query is : Resolved
Dear Learned Experts
An association is formed under the Karnataka Societies Act 1960. The association has conducted its Annual General Body Meeting and elected the Executive Committee Members and office bearers. It would be helpful to know whether the resolution for opening the bank account is to be passed at the AGM only or it should happen in the subsequent executive committee meeting
Your suggestion would be helpful.
Sudhir Kumar, Advocate
(Expert) 13 March 2023
If a resolution which could have jut been passed in EC) is already passed by AGM then prima-facie no need to pass in EC, However there is no harm in passing a resolution in EC as long as it does not contradict the resolution passed by AGM.
Vijaya Bhaskar
(Querist) 13 March 2023
Thank you, sir, for your instant reply.
I was also thinking the other way that the AGM will happen once in three years, whereas in order to have its operation a bank account is necessary to open a bank account and may not wait until the AGM, Hence felt to have the resolution passed in the EC meeting. However I was also thinking the General Body will only elect the EC members and office bearers. So having the resolution passed int he EC for opening Bank account should be fine as you suggested.
Thank you once again sir for your reply and suggestion.
kavksatyanarayana
(Expert) 13 March 2023
For opening a bank account whether the EC passed a resolution for bank account opening, it should be by AGM approval. What are the rules and regulations in the Funds column of the bylaws?
Dr J C Vashista
(Expert) 14 March 2023
Resolution passed by Managing Committee is sufficient to operate bank account(s) of the Society with result of election of Managing Committee and do not require approval of AGM.
It is not a legal dispute but procedural question, where the MC should have sought information from Bank(s)
T. Kalaiselvan, Advocate
(Expert) 14 March 2023
Annual general body meeting means it will be conducted once a year and not once in three years.
Besides your bylaws would state the procedures to open bank account including the approval by EC in its meeting. You may visit the bylaws once again
P. Venu
(Expert) 14 March 2023
The best option is to approach the Bank and seek their guidance. To my knowledge, even an unregistered Association can open a Bank Account.
Sudhir Kumar, Advocate
(Expert) 15 March 2023
you are probably mixing "opening of account " and "operation of account"
you should read society constitution and then discuss.
