Shareholder signature when opening bank account

[gengar3]

I am a 25% shareholder and I'm being asked to sign bank documents in order to open a new business bank account. Is this normal? I feel uncomfortable signing when I have no control of the bank account (or what guarantees my signature gives) . I used to be a director of the company but the records at companies house show that I no longer have anything to do with the company (TM01).

Is it mandatory that I sign?

 

[Annoying Donkey]

I can't see any reason why a shareholder would be a signatory... Who's asking...?

 

[gengar3]

Barclays (apparently). Just feel like I'm being railroaded by the director.

I am not longer part of the company because I pointed out accounting anomalies. I don't want anything to do with their money dealings (long story).

Just wondered if I am within my right to not sign.

I am being told that the company is trading illegally because I won't sign (it has a dedicated bank about that it uses but not one in the limited name).

 

[Chris Ashdown]

Were you a signatory on the present account in which case they may want to get your agreement to close the account, but no reason why a shareholder should sign and new bank mandate etc, more likely a trick to get you to guarantee the account

 

[gengar3]

Thanks Chris. That's what I'm thinking too.

The old account was closed behind my back when I was a director. I've since left and I've had nothing to do with them for almost a year. They are now opening new limited bank account, but insist I sign.

I'm guessing I'm not breaking any laws that state I have to sign?

 

[StevensOnln1]

Banks are required to obtain details of who the shareholders are when opening an account for a limited company. When I opened an account with the Co-op Bank for my company they required all shareholders with 20% or more holding to fill out their and sign a shareholders details page as part of the application form. If you refuse to sign presumably the bank won't be able to process the application to open the new account.

 

[Annoying Donkey]

Banks are required to obtain details of who the shareholders are when opening an account for a limited company. When I opened an account with the Co-op Bank for my company they required all shareholders with 20% or more holding to fill out their and sign a shareholders details page as part of the application form. If you refuse to sign presumably the bank won't be able to process the application to open the new account.

That rings a bell somewhere... I don't know if there is any liability associated with signing - probably is. The banks want their cake and eat it too...!

I doubt it's a law that you have to sign, but more like a condition of the bank.

 

[StevensOnln1]

You cannot be held personally liable unless you sign a personal guarantee, which would have to be made clear that you were giving a guarantee to be enforceable.