We believe that it is a best practice to wait until your bank at least has a copy of the corporate resolution reflecting the removal of the designated individual as a signer from the corporate account before removing the individual as a signer. Ultimately, this is a matter of bank policy if your account agreement does not specifically address the process for removing an authorized signer.

While there are no laws that would specifically require you to wait for a corporate resolution from your customer, without the corporate resolution your bank would be acting at the direction of the one individual who called in this request, without ensuring that that the business entity itself has revoked the designated individual’s signing authority. Therefore, we recommend at least waiting for the corporate resolution before removing the designated individual as a signer from the account to avoid the risk of improperly removing an authorized signer’s authority.