Template Description

This board resolution template is designed for companies that need to authorize the change of the company's name in their bank account(s) and to avail general banking facilities under the new name. It is a 2-page MS Word document. This resolution is essential for companies undergoing a name change and seeking to update their bank records accordingly. It is intended for use by companies, corporate professionals, and other relevant stakeholders.

Understanding the Board Resolution for Changing the Company Name in Bank Account

Terminologies

• ‘Board Resolution’: An official document that formalizes the decisions made by the board members during a company board meeting as per the Companies Act, 2013.
• ‘Name Change’: The legal process by which a company changes its registered name, necessitating updates to all official records, including bank accounts.

Procedure for changing the Company name in Bank Account

1) Board Meeting

• Convene a meeting of the Board of Directors to discuss the need for changing the company’s name in bank accounts and availing general banking facilities.
• Pass a resolution authorizing the name change in the specified bank accounts and instructing the bank to accept all cheques, promissory notes, and other instruments in the company's new name.

2) Bank Instructions

• Instruct the bank to update the account title with the company’s new name and to honor all financial transactions under the new name.
•  Authorize the bank to handle all transactions without inquiring into the circumstances of their issuance.

3) Ongoing Authority

• The resolution grants ongoing authority to the bank to act on the company’s instructions until a certified true copy of a new resolution is provided, revoking the previous authority.

4) Certified True Copy

• A certified true copy of the resolution should be furnished to the bank, ensuring the instructions are acted upon.

Conclusion

This board resolution is a critical document for companies undergoing a name change, ensuring that all banking operations continue smoothly and without disruption. It also provides the bank with clear instructions and ongoing authority, reducing the risk of any administrative errors or delays. This resolution not only ensures compliance with legal requirements but also protects the company’s financial interests during the transition period.