IBA Compliance Connection

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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?

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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.”)