{"id":7251,"date":"2013-07-28T13:39:41","date_gmt":"2013-07-28T13:39:41","guid":{"rendered":"http:\/\/disnaija.com\/nigerian-newspapers\/customer-account-opening-mandate-1\/"},"modified":"2013-07-28T13:39:41","modified_gmt":"2013-07-28T13:39:41","slug":"customer-account-opening-mandate-1","status":"publish","type":"post","link":"https:\/\/disnaija.com\/customer-account-opening-mandate-1\/","title":{"rendered":"Customer account opening \u2013 Mandate (1)"},"content":{"rendered":"
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A mandate is a documented instruction usually given by the customer to his banker detailing how his account is to be operated or how the items deposited in safe custody should be released.<\/p>\n

\u00a0A mandate only remains valid and operative as long as the account holder or holders are alive and there is no dispute between them. Usually, the instructions come in a form or format specified by the bank and normally called Mandate Form. This forms part of the overall account opening form. Account mandate is only usually applicable to current accounts, whether joint or corporate.<\/p>\n

\u00a0The key mandate is usually the signature mandate, which defines who signs, how and for what.<\/p>\n

\u00a0In a joint account mandate, it will show if only one or all partners in the company\/ joint account should authorise a transaction in the account.<\/p>\n

\u00a0There are other mandates such as account statements; how regular you want it; in which format; and the delivery point in the case of hard copy.<\/p>\n

\u00a0The mandate will also specify contact addresses, both residential and official of all the partners as well as their email addresses. This also serves the purpose of account statement delivery, as specified above.<\/p>\n

\u00a0In addition, the partners would be required by the mandate to provide their telephone contacts, preferably a GSM phone number for each of the partners for contact purposes.<\/p>\n

\u00a0Another critical provision of account mandate is cheque confirmation specifications where the partners would be required to specify how and what amount would require their confirmation before payment. Usually, if they are just two partners in the joint account, they would both be required to confirm the cheques. If they are three, any of the two members or any member along with a particular member must confirm. But in some cases, all the members would be required to confirm. However, because of the cumbersome and time consuming nature of cheque confirmation, most banks advise that joint account holders should limit their confirmation to just two signatories, if partners are more than two.<\/p>\n

\u00a0To this end, in some cases, there is a provision of \u2018either to sign\u2019 mandate which allows any of the parties, even when they are just two, to sign and confirm a cheque.<\/p>\n

\u00a0In any case, the agreement between the partners would have specified all these while a copy is demanded and deposited with the bank as part of the account opening requirements. In case of dispute between the partners, the bank will rely heavily on this document, in addition to both natural law and the principles and policies of the bank.<\/p>\n

\u00a0Customers\u2019 forum<\/b><\/p>\n

\u00a0My friend and I have a company in which either of us could sign to withdraw from our account.<\/p>\n

\u00a0We have been depositing and drawing money from the account on regular basis for over two years now. However, sometime in March this year, I received our statement of account and discovered that some money had been withdrawn from the account without my knowledge.<\/p>\n

\u00a0I have since discovered more of such withdrawals that occurred without my consent. When I confronted our account officer, she said she could not guarantee my request except if I put it in writing or my partner agreed to my request. What do I do?<\/p>\n

\u00a0First, the account officer is right. She is standing on the existing mandate of your joint account.<\/p>\n

\u00a0Any letter received from you or your partner in respect of this matter will automatically nullify the \u2018either to sign\u2019 mandate and subsequently, mutual suspicious would set in and a new mandate would be required for the account to be operated. Obviously, you are right that the partnership would be threatened.<\/p>\n

\u00a0Something worse may occur on that account if you do not act fast. But I advise, in the interest of the business, that you first discuss with your partner on ways of amending the mandate to change the either or clause and make both of you signatories on all withdrawals. You have to convince him with sound argument without sounding suspicious.<\/p>\n

\u00a0Alternatively, you can get the bank to call for a tripartite meeting between the partners and the bank to discuss the matter on neutral pedestrian.<\/p>\n

\u00a0If this is not possible and no satisfactory agreement can be reached, the partners can apply to the court for an order for dissolution. The court may therefore consider whether it is just and equitable to dissolve the partnership or not: Re Yenid Je Tobacco Ltd (1961).<\/p>\n

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Posted in Nigerian Newspapers. <\/a>A DisNaija.Com<\/a> network.<\/p>\n

Source: Punch Newspaper<\/p>\n

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