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What is an “account signatory”?

An account signatory is an individual who has signatory rights in the bank account. Such rights are granted by a Company Mandate (a special resolution, signed by the company Director(s), resolving to open a bank account and to appoint particular individuals as account signatories). An account signatory may “sign” on the account – which means, he or she can execute transfers, sign cheques and otherwise dispose with the money on the account. An account signatory may either have a single signatory right, or a joint signatory right together with another person. In the latter case, only two signatures are good to execute a transaction. In principle, there is an endless variation of options of how to configure joint signatory rights on a bank account.

For any regular company, the most obvious option is that the director is also the account signatory. However, anyone can be an account signatory to a corporation – even if such person is not formally related to the company.