Who can be official company correspondent?

[Printing Deals]

I am ex director of a company, now employee by the same. Managing it almost completely, and still sole account signatory.

But now bank has come to me and saying that new director needs to be a company official correspondent as only director or company secretary can be official correspondent, although director have given me authority to run the business as usual since he is busy in another business.

Is bank right to ask that? Does that mean I won't be able to deal with bank/accountant anymore on company's behalf?

Thanks
AJ

 

[NRLtd]

Hi

Employees can usually be signatories, in which case they can sign checks, access data and make enquiries/"talk" to the bank, deal with day to day issues.

The bank will need the director/s to be the official correspondent as they are the ones with ultimate responsibility for management of the company and have higher level authority for applying for accounts, granting permission to signatories (above). Also, as part of their diligence, banks will want to know who is really running the company.

 

[nelioneil]

You might not be a director but you are certainly acting like one - as you said you are still effectively managing the business and sole account signatory.

Its not a big issue, but it could cause a problem, if there is ever an investigation on directors conducts. Your position could be classified as a "shadow director" - someone who is not a director but is clearly acting like one and performing the same duties.

It's up to the other directors now to make the next step