Signatories if only one director

Hello all. I’m currently wading through the many bank offers out there, so that I can understand what is on offer as I think about the bigger picture of what I might want to do. At the moment there would just be me as a director, but I think that I have heard that most banks want two signatories on business accounts - is that right?

2 Likes

Hi Beatrice,
This is a really interesting question and it might depend on what your legal structure and your governing documents say. For example, we are a Community Interest Company and at the moment we have one authorised signatory even though there are 3 directors. If you are already set up as a company and only have one director then your bank should be fine with you as the only signatory.
You may find that if you are applying for social investment further down the line then some investors may want you to appoint additional directors and that is a whole other debate.

To answer your question specifically, you should be fine with one director and if a bank asks you for additional directors then I would challenge this. Certainly our bank (the very friendly people at Lloyds) do understand social enterprise legal structures and are fine with a single signatory.

4 Likes

Thanks Dave. That’s really helpful! So glad that I found this community!

1 Like

I think that Dave is right but they may need to do due diligence on any other directors (even if they are not signatories) which takes a bit of time.

3 Likes