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

What is a Resolution To Remove Signatory From Bank Account?

A Resolution to Remove Signatory From Bank Account is a critical governance document used when an organization needs to formally revoke an individual's authority to conduct banking transactions. This document is commonly needed when employees leave an organization, roles change, or security measures require updates. The resolution must comply with both federal and state banking regulations in the United States, and typically requires board approval. It serves as the official record for the bank and the organization's corporate documents, protecting both parties by clearly documenting the change in banking authority.

About the Resolution To Remove Signatory From Bank Account

Bank signatories are the individuals a business authorizes to operate its bank accounts: signing checks, approving payments, drawing on credit, and managing online banking access. To remove a signatory 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, usually with a short cover letter, to the bank, complete any signature card update the bank requires, and collect the removed signatory's cards, checks, and online access. The change takes effect when the bank processes it, not when you execute the document.

What is a bank signatory?

A bank signatory, sometimes called an authorized signer, is a person the account owner has given authority to transact on a business account. Depending on the mandate the bank holds, a signatory may issue payments, sign checks, manage a company credit card, operate online and mobile banking, and move funds across checking, savings, deposit, and investment accounts. Each signatory is listed on the bank's signature card or online management portal, and changing who holds that authority requires a written instruction from the account owner. Removing a signatory means taking their name off that record so they can no longer access or move the company's money.

What should a sample letter to remove a signatory from a bank account include?

Many banks accept a board resolution on its own, but a one-page cover letter addressed to the bank makes the request easy to process. A clear sample letter to remove a signatory from a bank account includes:

• The business name exactly as it appears on the account, and the account number(s) affected.
• The full legal name and title of the signatory being removed.
• A direct statement that the business is revoking that person's authority to transact on the named accounts.
• The effective date you are requesting, and a request to cancel their cards, checks, and online and mobile access.
• A reference to the attached board resolution authorizing the change.
• The signature of an authorized officer, with name, title, and date.

Keep the content factual and short. Print the letter on company letterhead, attach the resolution, and have an authorized officer execute it. This is the change letter the bank acts on, so most banks will not act on a phone call or email alone. The written order from the account owner is the document that actually moves the change forward.

How do you remove a signatory 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 signatory being removed and the specific bank accounts affected.
• Execute and date the resolution according to your organization's bylaws or operating agreement.
• Deliver the resolution, with a cover letter, to the bank, together with any bank-specific form or updated signature card for the checking, savings, and deposit accounts.
• Update the signature card so the remaining and any newly added authorized signatories are correctly listed.
• Retrieve the removed signatory's debit cards, unused checks, company credit card, and revoke online and mobile banking access.
• Update internal financial controls and notify relevant staff of the change.

The board meeting that approves the change should be minuted, and the minutes kept with your corporate records alongside your annual reports and governance log. Where a business is run as a sole proprietorship, there is no board, so the owner issues the letter and the bank's own form directly.

How do you revoke signatory authority for a business that isn't a corporation?

The core idea is the same across structures: the entity, acting through whoever holds authority, orders the bank to remove the person and revoke their signatory authority. The authorizing step differs by business structure.

Across the sole proprietorship, partnership, LLC, and corporation forms, the written order is what the bank relies on. For related documents, see the definition of account signatory.

When do you need this document?

You'll need this resolution whenever an authorized signatory's role changes or ends. Common situations include employee termination, role transitions, retirement, ownership changes, the departure of a business partner, 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, a change in the leadership team, or when tightening financial management and controls. Without proper documentation, a former employee or partner might retain unauthorized access to your business accounts, including online banking, cards, and scheduled payments, creating financial, fraud, and privacy risks for the company. The same risk extends to any linked facilities a signatory could reach, such as a business credit card, a line of credit, a foreign currency account, or investment accounts.

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

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. People often add a signer to an account for convenience, so a trusted person can transact when the primary signer is unavailable, and the same resolution can both add and remove signers in one step. 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 signatory can move funds, draw on credit, operate digital banking, 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 execute it. Protecting company privacy matters here too, so review your bank's privacy policy and online banking settings: a removed signatory should lose visibility into account balances, statements, and digital access 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, partnerships, and sole proprietorships differ, so confirm your state's rules and your bank's process before submitting, as non-compliance can delay the removal.