Company Bank account

carlos1986

Hi

myself and my 2 brothers have startwed a business and are ready to open a bank account.

The type of account we want is just one that simply lets us pay money in and pay money out. we dont want any loans,overdrafts or anything like that.

the only problem is one of my brothers has bad credit, will this stop us getting a company bank account?

are there any banks that are better to apply to in such situations?

what would the legal implictions be of not having all 3 of us on the company account?

Thanks

jonesMUFCforever

Why not try?
Are you a limited company or a partnership>?

thenudeone

The signatories on a limited company account can be whoever the directors want it to be, with whatever limits or requirements they want.
Once they have agreed it, then the company is liable for those cheques, even if the directors don't agree with a particular payment.

For example: employee A can sign up to £1000 alone; contract book-keeper B can sign up to £5000 alone. Anything over £10000 needs to be signed by two people, one of which must be either person C or person D; and so on. Unlikely in your case but you get the picture.

jonesMUFCforever

thenudeone wrote: »

The signatories on a limited company account can be whoever the directors want it to be, with whatever limits or requirements they want.
Once they have agreed it, then the company is liable for those cheques, even if the directors don't agree with a particular payment.

For example: employee A can sign up to £1000 alone; contract book-keeper B can sign up to £5000 alone. Anything over £10000 needs to be signed by two people, one of which must be either person C or person D; and so on. Unlikely in your case but you get the picture.

But the bank firstly has to decide whetner they will open an account for the company - they will want to id and possibly credit score the directors whether they will sign on behalf of the company or not.