3 Answers
Dear Client,
In general, a person who is an authorised signatory of a joint bank account of a registered society cannot ordinarily change the account's signature/mandate on their own without following the society's governing rules and the bank's prescribed procedure. If the society's bylaws require approval of the Executive Body/Managing Committee, such approval would normally be necessary. Any unilateral alteration may be challenged before the bank and the appropriate authority, depending on the circumstances. You should immediately obtain the bank's account-opening form, current mandate/signature records, society bylaws and relevant Executive Body resolutions to determine whether the change was authorised. If an unauthorised change has already been made, submit a written objection to the bank and preserve all records.
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Hope this clarifies your position.
OLQ LAW FIRM
Dear Client,
An authorized signatory cannot legally change or update their specimen signature for a joint bank account of a registered society in India without the explicit authorization and resolution of the society’s executive body. Under the Societies Registration Act, 1860, a registered society functions as a distinct legal entity managed strictly by its Governing Body or Executive Committee in accordance with its registered Bye-laws. Because the bank account is held in the name of the society rather than the individuals, operations are regulated by Reserve Bank of India guidelines governing accounts of non-individual entities. Any alteration to the banking mandate including updating a specimen signature, replacing a signatory, or changing operating instructions requires a fresh resolution passed at a meeting of the Executive Body. The bank will strictly refuse to accept or record a signature change from an individual signatory unless it receives a certified copy of this official resolution along with proper attestation from designated office bearers, such as the President or Secretary.
I hope this answer helps, if you have any other query kindly do not hesitate to contact us. Thank you.
Dear Client
If it is possible for one to change his/her signature in a bank account held by a registered society will depend on whether the society has its registered bye-laws, bank mandate, and authority vested on that specific office bearer.
Where there are authorised, signatories operating an account on the resolution of the society’s executive committee, it becomes impossible for a single authorised signatory to change the mandate of the society or authorised signatories just because of approaching the bank. A change affecting who is authorised to operate the society's account would generally require the procedure prescribed by the society's bye-laws and the bank's account mandate, which may include a resolution of the competent body.
However, there is a distinction between changing the specimen signature of an existing authorised signatory and changing the persons authorised to operate the account. A bank may have its own procedure for updating a signatory's specimen signature, and the exact requirements should therefore be checked with the bank.
If the change was done without proper authority, then obtain the records of the bank and the bye-law of the relevant society, and raise objection against both the bank and the society. If needed, the issue may be taken up by the concerned authority according to the law for the registered society.
I hope this answer helps. If you have any further query kindly do not hesitate to contact us. Thank you.