What document is required when a corporation wishes to open a cash account?

When a corporation wishes to open a cash account, a corporate resolution is required. This document is essential because it formalizes the decision made by the corporation’s board of directors to open an account on behalf of the corporation. It specifies who has the authority to act on behalf of the corporation in financial matters, ensuring that the financial institution has clear documentation of the authorized individuals involved.

A corporate resolution serves as a safeguard for both the corporation and the bank, providing legal protection and outlining the powers granted to designated officers or employees to manage the cash account. This requirement helps maintain corporate governance and accountability in financial transactions. Other documents, such as a corporate charter or certificate of incorporation, establish the corporation itself but do not specifically address the authority for financial dealings like a resolution does. Additionally, a partnership agreement pertains to partnerships, not corporations, and is therefore not applicable in this context.