Document background
A Board Resolution Closing Bank Account is a crucial corporate governance document required when a company in South Africa decides to terminate its banking relationships or close specific accounts. This document is necessary to comply with both the Companies Act 71 of 2008 and banking regulations, providing formal evidence of the board's decision and authorization. It's typically used during company restructuring, account consolidation, change of banking service providers, or when closing dormant accounts. The resolution must include specific details such as account numbers, bank details, authorized signatories, and closure instructions. It serves as the bank's authority to proceed with the account closure and protects both the company and the bank by ensuring proper corporate governance procedures are followed. The document must be drafted in accordance with South African legal requirements and should be accompanied by necessary supporting documentation.
