Resolution To Remove Signatory From Bank Account Template for the United States

To remove a signer from a corporate bank account, the board passes a resolution that names the person losing signing authority, identifies the affected business bank accounts, and authorizes an officer to notify the bank. You then deliver that signed resolution to the bank, complete any signature card update the bank requires, and collect the removed signer's cards, checks, and online access. The change takes effect when the bank processes it, not when you sign.

How do you remove a signer from a corporate bank account?

The account owner is the business entity, so the removal is a corporate action taken by the board or authorized officers rather than a personal request. In practice the steps are:

• Pass a board resolution identifying the authorized signer being removed and the specific bank accounts affected.
• Sign and date the resolution according to your organization's bylaws or operating agreement.
• Deliver the resolution to the bank, together with any bank-specific form or updated signature card for the checking and deposit accounts.
• Update the signature card so the remaining and any newly added authorized signers are correctly listed.
• Retrieve the removed signer's debit cards, unused checks, and revoke online and mobile banking access.
• Update internal financial controls and notify relevant staff of the change.

Most banks will not act on a phone call or email alone. They need written authorization from the account owner, which is why the resolution is the operative document.

When do you need this document?

You'll need this resolution whenever an authorized signer's role changes or ends. Common situations include employee termination, role transitions, retirement, ownership changes, or updating security protocols. Banks require formal documentation before removing signatory authority, making this resolution legally necessary rather than optional. The document is also relevant during corporate restructuring or when implementing enhanced financial controls. Without proper documentation, a former employee or partner might retain unauthorized access to your business accounts, creating financial, fraud, and privacy risks for the company.

How is removing a signer different from adding an authorized signer?

Both actions change who can transact on the account, and both are approved by the same corporate authority, but they move in opposite directions.

When you add an authorized signer to a business bank account, the bank verifies the new person's identity under federal rules, which is why a Social Security number and government identification are usually required. It's common to handle both directions in a single resolution during a transition, for example when a new finance lead takes over from a departing one. Choosing an authorized signer for a business account is a financial decision the board should weigh carefully, since each signer can move funds, draw on credit, and commit the company on financial transactions.

Key legal considerations

The resolution must clearly identify the signatory being removed, specify the affected bank accounts, and demonstrate proper corporate authority for the change. Include the individual's full legal name, title, and the specific banking privileges being revoked. Board approval is typically required, and the resolution must be properly dated and executed according to your organization's bylaws. Consider timing carefully, because the removal becomes effective when the bank processes the resolution, not when you sign it. Protecting company privacy matters here too: a removed signer should lose visibility into account balances and statements as soon as the change is processed.

Legal requirements in United States

Federal regulations including the Bank Secrecy Act and USA PATRIOT Act govern signatory changes, requiring banks to verify identity and maintain proper documentation. Your resolution must comply with Federal Reserve regulations and state banking laws specific to your jurisdiction. State corporation laws dictate the required approval process, and some states require unanimous board approval while others accept majority votes. The Uniform Commercial Code provides standardized rules for banking relationships and signatory authority across states. Your bank may have additional requirements such as notarization, witness signatures, or a specific form that must accompany your resolution. Requirements for corporations, LLCs, and partnerships differ, so confirm your state's rules and your bank's process before submitting, as non-compliance can delay the removal.