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Do corporate members have equal access to bank accounts?

Discussion in 'Banking, Finance, Investments' started by Corp, Mar 7, 2022.

  1. Corp

    Corp Law Topic Starter New Member

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    There are two members of a corporate entity. The company bank account was established by member #1 (50%). Does member #2 (50%) have access to the bank account, given they provide all legal documentation related to the corporation and their membership?
     
  2. zddoodah

    zddoodah Well-Known Member

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    You mean shareholders? The owners of an LLC are called members. The owners of a corporation are called shareholders (or stockholders).

    As phrased, this question asks about a matter of fact, and we obviously have no way of knowing the answer. I suspect what you intended to ask was whether some law gives all corporate shareholders a right to have access to the corporation's bank accounts. The answer to that question is no. If your intent was to ask whether governing documents of this particular corporation give that right to both shareholders, that's obviously something no one here can answer.

    Not sure what this means, but if "member #1" is the only authorized person on the account, the bank isn't going to give "member #2" access.
     
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  3. flyingron

    flyingron Well-Known Member

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    Members and shareholders do not necessarily have ANY access to corporate bank accounts.
     
  4. PayrollHRGuy

    PayrollHRGuy Well-Known Member

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    Without a court order, the bank is only going to allow those named on the account into the account. This may be one or more of the members or some random employee.
     
  5. adjusterjack

    adjusterjack Super Moderator

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    Ask someone at the bank if you have access. They'd know.

    Why wasn't the corporate finances addressed when you first went into business with this other person?
     
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  6. army judge

    army judge Super Moderator

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    Going into a business with anyone isn't something that should be tried UNLESS and UNTIL all duties, rights, obligations are memorialized in a contract or partnership agreement.

    The contract and other documents should be vetted by each person's attorney.

    If a handshake or nod of the noggin is all that initiates the enterprise, expect treble the issues and problems had you not been so hasty and careless.

    Haste makes waste.
     

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