Signer Adding Signer?

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Question:

If the only officer of a corporation who has a business account dies, but there is another signer on the account, can that signer add another signer to the business account? How would they add someone else as an officer for the business?

Answer:

Presumably, the corporation has a board of directors. Only the board of directors can authorize signers on a deposit account.

This can be a problem for closely-held corporations if the sole owner and sole board member has died. In that case, the decedent's estate will need to elect a board that can issue the authorization.

First published on BankersOnline.com 1/29/07