Accounts of special customers


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Accounts of special customers

  1. 1. Chapter 8
  2. 2. <ul><li>Section 4 of the Partnership Act, 1932 states: Partnership is the relation between persons who have agreed to share the profits of the business carried on by all or any one of them acting for all. </li></ul><ul><li>Agreement( oral and written) </li></ul><ul><li>Firm and partners </li></ul><ul><li>Numbers of partner in a firm </li></ul>
  3. 3. <ul><li>Account is opened according to the instructions at the time of the account. </li></ul><ul><li>Implied power of the Co-partner </li></ul><ul><li>Account opening form and signatures </li></ul><ul><li>Partnership letter and partnership deed </li></ul><ul><li>Joint- and-several </li></ul>
  4. 4. <ul><li>Implied authority of a partner. </li></ul><ul><li>The task of a cautious bank? </li></ul><ul><li>Implied authority for legal mortgage </li></ul>
  5. 5. <ul><li>Liability of an incoming partner </li></ul><ul><li>Operations between the bank and firm </li></ul><ul><li>Clayton’s Case against account </li></ul><ul><li>Signing of agreement on existing tangible securities. </li></ul>
  6. 6. <ul><li>Provisions for retirement </li></ul><ul><li>Liability of the retired partner </li></ul><ul><li>Operation of the firm account </li></ul><ul><li>Clayton’s case against banker </li></ul><ul><li>Severally liability of the retired partner </li></ul>
  7. 7. <ul><li>Partnership and bankrupt partner </li></ul><ul><li>Procedure for winding up business </li></ul><ul><li>Operations of the account </li></ul><ul><li>Clayton’s case against banker </li></ul>
  8. 8. <ul><li>Partnership and deceased partner </li></ul><ul><li>Operations of the account and state of the bank </li></ul><ul><li>Clayton’s case against account </li></ul>
  9. 9. <ul><li>Winding up of business </li></ul><ul><li>Ceasing account operations </li></ul><ul><li>Ceasing personal account of partners </li></ul><ul><li>Partner pari pasu </li></ul>
  10. 10. <ul><li>An association of individuals for the purpose of profit, possessing a common capital contributed by the members constituting it, such capital being commonly divided into shares, of which each possesses one or more and which are transferable by the owner. </li></ul><ul><li>There are 3 types of JSC </li></ul><ul><li>Unlimited Companies </li></ul><ul><li>Limited Companies </li></ul><ul><li>Companies limited by </li></ul><ul><li>guarantees </li></ul>
  11. 11. <ul><li>These companies may be formed in any one of the following ways: </li></ul><ul><li>Chartered Companies </li></ul><ul><li>Statuary Companies </li></ul><ul><li>Registered Companies </li></ul><ul><li>Limited companies a company limited by guarantees </li></ul>
  12. 12. <ul><li>Resolution of BOD </li></ul><ul><li>Memorandum and articles of association </li></ul><ul><li>Certificate of incorporation </li></ul><ul><li>Certificate of commencement of Business </li></ul><ul><li>Balance sheet </li></ul>
  13. 13. <ul><li>Number of member in BOD </li></ul><ul><li>Account opening criteria </li></ul><ul><li>Authorization in the form of a resolution comprising of </li></ul><ul><li>Name of the banker </li></ul><ul><li>Name of the persons authorized to operate upon the account and their specific authorities </li></ul><ul><li>An undertaking that as and when the resolution will be revoked or the directors will change, the bank will be informed immediately. </li></ul>
  14. 14. <ul><li>General power of the company vested in directors. </li></ul><ul><li>Election, rotation and retirement of directors, including their relationship </li></ul><ul><li>Procedures for calling of the meetings and passing of resolutions </li></ul><ul><li>Assessment of profit and loss accounts </li></ul>
  15. 16. <ul><li>Issued by registrar of joint stock company </li></ul><ul><li>Evidence that the company is registered and fulfills all the requirements for formation by law </li></ul>
  16. 18. <ul><li>Issued by the register of the joint stock company </li></ul><ul><li>Criteria is: </li></ul><ul><li>Subscription of shares( public and directors) </li></ul><ul><li>Submission of statuary declaration </li></ul><ul><li>prospectus </li></ul>
  17. 19. <ul><li>Financial affairs of the company </li></ul><ul><li>Audit reports </li></ul>
  18. 20. <ul><li>Implied power to borrow money for the purpose of business( ultra vires) </li></ul><ul><li>Task of a banker </li></ul><ul><li>Resolution </li></ul><ul><li>Guarantees from directors </li></ul>
  19. 21. <ul><li>Resolution of BOD nominates the authorized person </li></ul><ul><li>Specimen signatures </li></ul><ul><li>Death/retirement and dismissal of the authorized person </li></ul><ul><li>Opening an account without Certificate of commencement </li></ul>
  20. 22. <ul><li>Winding up has 3 following ways </li></ul><ul><li>Compulsory Winding up by the court </li></ul><ul><li>Voluntary Winding up </li></ul><ul><li>Winding up under supervision of court </li></ul>