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Authorisation Letter to Financial Institution

Account Opening from Corporate Client

This document is an Authorisation / Request form given by a company / entity to open a corporate account with a financial institution for investment / trading purposes. It authorises the bank to open up a corporate account in which all the purchases, sales, holdings and other dealings in securities effect from time to time. 

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The document should be signed by the authorised signatory (or directors of a company) and witnessed to complete the formality.

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Document Description

The 'Authorisation Letter to Financial Institution' is a document that grants permission to a financial institution to open and maintain one or more cash/margin securities trading accounts on behalf of a company. The document begins with a formal address to the account job company, followed by the current date. The letter is addressed to the 'dear sirs/madams' of the financial institution.

 

The detailed introduction of the entire document highlights the purpose and importance of the authorisation letter. It explains that the letter is a formal request and authorisation for the financial institution to open and maintain trading accounts for the company. The letter specifies that the accounts will be used for purchasing, selling, holding, and other dealings in securities as instructed by the company. It emphasizes that the account opening and all transactions will be subject to the provisions of the authorisation for account opening and the cash client's agreement.

 

The document is divided into several sections, each with its own detailed introduction. The first section requests the financial institution to open and maintain the trading accounts in the name of the company. It states that the company authorises and requests the institution to act as its agent for securities transactions. It also mentions that the agreement forms an integral part of the authorisation for account opening.

 

The second section provides a list of documents enclosed with the letter for the purpose of opening the account. These documents include a certified extract of board resolution, account opening form, certified copies of the memorandum and articles of association, certified audited accounts, valid business registration certificate, certificate of incorporation, details of directors and latest annual return of the company, certified copy of the register of members/shareholders, and certificates of registration and good standing from the registrar of companies. The introduction explains that these documents are necessary for verifying the company's identity and compliance with legal requirements.

 

The third section contains a warranty from the client, stating that the information provided in the account opening form is true and correct. It assures the financial institution that they can rely on this information unless notified of any changes. The client undertakes to promptly inform the institution of any material changes to the information provided.

 

The fourth section confirms that the individuals listed on the account opening form are authorised to give instructions and sign on behalf of the company. It states that the information provided in the form is true, complete, and accurate.

 

The fifth section acknowledges the financial institution's right to rely on instructions given by the authorised persons listed on the account opening form. It states that the institution can act on these instructions, whether given orally, over the phone, or in writing. It also acknowledges that confirmations and statements issued by the institution regarding the account will be binding on the company.

 

The sixth section is a declaration by the client, stating that the contents of the authorisation letter, account opening form, and agreement have been fully explained to their representative(s) in a language they understand. It confirms the client's agreement to be bound by the provisions of the letter.

 

The seventh section, applicable only to overseas companies, appoints a specific individual to accept service of any legal proceedings related to the authorisation letter and agreement.

 

The letter concludes with spaces for the client's signature(s) and company chop, as well as the names of two directors signing on behalf of the client company and the date.

 

How to use this document?


1. Prepare the necessary information: Gather the company's details, including the principal place of business, and the financial institution's information.

2. Address the letter: Begin the letter with a formal address to the account job company and include the current date.

3. Introduce the purpose and importance: Highlight the importance of the authorisation letter and its role in granting permission to the financial institution to open and maintain trading accounts on behalf of the company.

4. Provide a detailed introduction for each section: Explain the purpose and content of each section, such as the request to open and maintain accounts, the enclosed documents, the client's warranty, confirmation of authorised persons, and acknowledgement of the institution's right to rely on instructions.

5. Enclose the required documents: Ensure that all necessary documents are completed, signed, and enclosed with the letter. These may include a certified extract of board resolution, account opening form, certified copies of relevant company documents, audited accounts, business registration certificate, and more.

6. Verify the accuracy of information: Double-check that all information provided in the account opening form is true, correct, and complete. Make sure to promptly notify the institution of any material changes.

7. Understand the institution's rights: Acknowledge that the financial institution has the right to rely on instructions given by authorised persons listed on the account opening form. Confirm that all confirmations and statements issued by the institution will be binding on the company.

8. Declare understanding and agreement: Sign the letter and affix the company chop. Provide the names of two directors signing on behalf of the client company.

9. Appoint a representative (for overseas companies): If applicable, appoint a specific individual to accept service of any legal proceedings related to the authorisation letter and agreement.

10. Date the letter: Include the date of signing the letter.

 

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