When you open a current account, your bank will require your specimen signature. The bank will compare your signature on the cheque issued by you against this specimen signature. If the signature is different, the bank will refuse to pay the cheque and return the cheque on the ground that "signature differs".
For a joint current account, all the account-holders' signatures must be provided together with specific instructions as to who can operate the joint account.
For current accounts operated by a business/company, specimen signature(s) of person(s) authorized to sign cheques on behalf of the business/company and the extent of their authority, must be provided in the form of a mandate or resolution.
Any changes to the signatories must be conveyed to the bank immediately in writing by the accountholder. In addition, an extract copy of the Board/Committee Resolution stipulating the change, effective date of change and signed in accordance with the conditions of the account must be given to the bank. The Resolution must be certified by the company secretary and signed by the quorum of directors as provided for in the memorandum & articles of association.
Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)
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