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Talking Shop: Who Is Allowed to Open Bank Accounts at Your Company?

By April 8, 2021April 15th, 2021No Comments

Editor’s note: The NeuGroup Process brings members together to solve problems and answer each other’s questions in a variety of forums, including online communities for specific groups—one of many benefits of membership. Talking Shop shares valuable insights from these members-only exchanges (anonymously) with all members and NeuGroup Insights readers. We welcome your responses—and any questions you want answered: [email protected].

Member question: “We are trying to do some benchmarking: Do your board resolutions allow the treasurer (and others?) to open bank accounts or is it just limited to the CEO and CFO?”

Peer answer 1: “Our resolutions, and in some cases powers of attorney (depending on the locale/type of entity), all point to the treasurer as having this authority.

  • “I suppose technically our CFO could also, but in practice it just isn’t realistic for [the CFO] to be involved in those activities.
  • “We also took it a step further and implemented a specific policy statement as well stating that, in effect, only the treasurer can do (or delegate) treasury related things with the typical list of what those are.
  • “We did this to cover ourselves in those challenging geographies where local entity board members claim they cannot legally abdicate their authority to others to do things like open bank accounts.
  • “So our policy [basically provides air cover to prevent local management executives from doing anything that we have decided to limit to the treasurer].”

Peer answer 2: “We have a treasury committee comprised of our CFO, controller and me. For bank accounts, we need approval from two members of the committee.”

Peer answer 3: “Resolutions empower me and my cash management directors in addition to key executive officers. Two signatures, like others. Almost never CFO or CEO involvement.”

Peer answer 4: “Ours specifies the treasurer can open bank accounts, and we no longer even put the CEO or CFO as signatories to our bank accounts.”

Peer answer 5: “Our company only allows the CFO to open bank accounts.”

Justin Jones

Author Justin Jones

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