Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wp-migrate-db domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /srv/app/gotoiba-dev/htdocs/web/wp-includes/functions.php on line 6121
We have a corporate account that was opened several years ago. We have a corporate resolution showing the owner and three other individuals as authorized signers for the account. The owner recently died, and one of the authorized signers has been running the business and wants to continue to run it (a grocery store) until it can be sold. Do we need to do anything? – IBA Compliance Connection

IBA Compliance Connection

Your go to source for compliance!

We have a corporate account that was opened several years ago. We have a corporate resolution showing the owner and three other individuals as authorized signers for the account. The owner recently died, and one of the authorized signers has been running the business and wants to continue to run it (a grocery store) until it can be sold. Do we need to do anything?

—

by

No. A corporation normally continues to exist after a sole owner’s death, and until the bank is notified otherwise, the account and its other authorized signers should remain valid.

Having said that, we recommend that the bank seek to identify the person or persons who now have legal ownership or control of the business and its account and seek clarification as to their intent with respect to the account.  

For resources related to our guidance, please see:

  • Business Corporation Act on 1983, 805 ILCS 5/2.10(d) (“The duration of a corporation is perpetual unless otherwise specified in the articles of incorporation.”)