How to take over control of a bank account of a small private limited company

[SSAL]

Ex-director has control of the bank account. He was retired by rotation at recent general meeting, with new directors to appointed. He isn't voluntarily handing over access to the bank account. How do the new directors notify/convince Barclays Bank to change authorisation?
Thank you

 

[WaveJumper]

Welcome to the UKBF what is his reason for not giving up control of the bank account

Every bank will have its own regulations and protocols for adding directors and other authorised signatories to business bank accounts. I would have thought in the first instance you should contact your bank to determine the requirements for changing your banking mandate.

Generally, however, a new director will be required to visit a branch in person.

 

[Scalloway]

It's all here on the Barclays website
https://www.barclays.co.uk/business-banking/manage/business-mandate-change/

 

[SSAL]

Thank you for your reply.
The link says, 'To make changes to your mandate, the person who calls us must be an official named on your account.'
That's the problem in this case: the only person named on the mandate is the person refusing to relinquish control. He won't contact the bank. The bank won't accept changes from anyone else. Catch 22?

 

[WaveJumper]

Why is he refusing and secondly why an earth is there only one persons signature on the bank account. Is this an actual trading company or some form of organisation / club

 

[SSAL]

Yes, it is a trading company that owns & manages a communal garden in London. A combination of the death of a former director who was a co-signatory on the bank account, hostility from the remaining director and apathy amongst some other shareholders has all led to the current situation.

 

[SSAL]

Why is he refusing? Largely because he's lived here 30+ years and considers the garden (and by extension the Company) his own, and resents, in clear breach of Companies Act law, other shareholders getting involved.

 

[WaveJumper]

Ah now it makes sense. Others may have another view but I think I would try the "simple" approach and get a meeting with the bank taking along all relevant paper work re old / new directors terminations and appointments and hopefully as it's a company bank account they will see sense.

Does the account hold considerable funds

 

[Scalloway]

It might be worth opening a bank account with another bank so you can pay money in and pay expenses.

 

[SSAL]

Thank you both for you replies. Much appreciated.

 

[nelioneil]

Cant you produce board minutes to show that the old director has retired and no longer a director. That should be enough evidence for the ex director being removed from the mandate.

 

[The Resolver]

If the visit doesn't help:-

hold a Board meeting with new directors to pass a Resolution to terminate the authority of the ex-Director over the bank account (referencing his retirement )and appoint new Director(s) to that role. You need to then write to the Bank to confirm he is no longer a Director (link to Companies House register showing that fact - if not update CH file yet then do it asap) attaching copy Resolution and confirming that he therefore has no authority over ther company's assets and requiring them to amend the mandate,.

State that you will hold the Bank responsible for any damage caused as a result of their continuing to refuse the request of their customer (the company) delivered by the only people with authority, the current directors.

The above assumes some significant sums in the account or other arrangements making a change of bank inconvenient else just follows Scalloways practial advice to open a new account.

 

[Paul Kelly ICHYB]

hold a Board meeting with new directors to pass a Resolution to terminate the authority of the ex-Director over the bank account (referencing his retirement )and appoint new Director(s) to that role.

What he said!

 

[The Resolver]

What he said!

It was so good it was worth saying twice.

 

[SSAL]

Thank you Graham.
I shall follow your plan.
The sum in the existing account is not considerable, but well worth the effort to recover.