Is it customary for board members to be a signatory on bank accounts of small corporations?
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Is it customary for board members to be a signatory on bank accounts of small corporations?
Asked on December 19, 2013 under Business Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
Not usually, no. Typically, signatories will be certain senior executives (e.g. the president or the CEO) and certain financial staff (e.g. CFO, controller...obviously, this list and the list of senior executives will overlap). There's nothing improper or illegal about board members being signatories on bank accounts, but unless they also have a second hat as an officer or manager, it's not the norm.
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