Q.Mr. Kishor Save, a Director of Deccan Traders Limited authorised to operate the company's bank account, resigned from the Board on 5th December. The company's Board, at its meeting on 10th December, resolved to withdraw his authority and to authorise the newly appointed Director, Ms. Vaishali More, to operate the account jointly with the Company Secretary instead. Draft the letter the Company Secretary should send to the bank, and explain why this letter cannot be delayed.

A resigned director's authority to operate the account does not end automatically in the bank's own records — the bank must be told in writing, or it may still honour a cheque the outgoing director signs, or refuse one the new signatory signs. …

DECCAN TRADERS LIMITED

Registered Office: Laxmi Chambers, Shivajinagar, Pune – 411005

CIN: U51900MH2010PLC198765

Date: 12th December

The Manager

Bank of India

Shivajinagar Branch

Pune

Dear Sir/Madam,

Sub: Change in Authorised Signatory — Account No. 62310045890

We wish to inform you that Mr. Kishor Save, a Director of the Company and one of the persons hitherto authorised to operate the above account, resigned from the Board with effect from 5th December. Our Board of Directors, at its meeting held on 10th December, resolved to withdraw Mr. Save's authority to operate the account and to authorise Ms. Vaishali More, Director, to operate the account jointly with the Company Secretary in his place, with effect from 10th December.

We enclose a certified true copy of the Board Resolution dated 10th December, together with the specimen signature and photograph of Ms. Vaishali More, and request you to kindly update your records accordingly, treat Mr. Save's signature as no longer valid on this account, and confirm the same to us in writing.

Thanking you,

Yours faithfully,

For Deccan Traders Limited

(Meenal Kulkarni)

Company Secretary

Encl: Certified Board Resolution; specimen signature and photograph …

Students sometimes assume a director's resignation automatically ends their signing authority at the bank — the bank only updates its own records once it receives a written letter and the authorising Board Resolution, so any delay i …