Who can sign off payments on a limited company bank account?

Most owners set up the company account once and never look at who can use it. That is fine until a director leaves, two directors fall out or a payment goes out that nobody meant to approve. The settings that decide each of those were agreed on the day the account opened.

This page recommends no provider and quotes no tariffs, because banks set their own mandate rules. The examples use assumed amounts to show the point.

Who owns a limited company's bank account?

The company does. A limited company is a separate legal person, so its account is held in its own name and not in the names of the directors. There are no joint holders, which is the main difference from a personal joint account.

People act for the company instead. The bank asks who they are, checks them and records what each person is allowed to do.

Other business types work differently. In a partnership, the partners personally share responsibility for the business, according to GOV.UK, so the people named on the account matter even more.

What is a bank mandate?

A bank mandate is the bank's record of who can act on the account and how. It lists the authorised people and sets rules for what they can do. A high street bank's guide to business accounts describes four levels of access.

• Full access. Can make and approve payments, apply for products and change the account.
• Signatory only. Can make payments but cannot change the account or apply for products.
• View only. Can see balances and transactions but cannot make payments or changes.
• No access. Has no connection with the account.

The names and options differ between banks, so ask yours which levels it offers. The same guide says directors are the people listed at Companies House, which is why keeping that record accurate matters.

Should a company account be one to sign or two to sign?

The mandate also sets how many authorised people must approve a payment. Banks usually offer three settings.

One to sign is quick. It also means one stolen login, one mistake or one person acting alone can send money out. Two to sign adds a pause and a second pair of eyes, at the cost of some speed.

Many banks let the company set different rules for different actions, such as one to sign small payments and two to sign anything above a set amount. Ask your bank whether it offers that.

Who should have access to the account?

The fewest people who can still keep the business running. Every extra person with payment access is another login to protect and another person to remove later.

• Directors. Usually full access, with two to sign if there is more than one.
• A finance director or controller. Banks can add people with significant influence over the day to day finances, and the company decides how much they can do.
• A bookkeeper or accountant. Often view only, which lets them do the books without being able to move money.
• Staff with cards. Where the bank allows it, give a card with its own limit and not access to the main account.

Handing out access does not pass on responsibility. GOV.UK says directors are still legally responsible for the company's records, accounts and performance even when others do the work.

What happens when directors disagree?

One bank's guide says that if a dispute arises between the people with full access, it may require all of them to approve every transaction until it is resolved. That can stop the business paying staff and suppliers.

The way to avoid it is to agree the rules before there is a dispute. Put in writing who approves what, and what happens if two directors cannot agree. A solicitor or the company's articles can set that out, and the bank mandate then follows it.

What should you do when a director leaves?

Act the same day. A former director who still has online banking is the most avoidable risk in this article. Work through the steps in order.

Companies House says a company must tell it about changes to directors' details within 14 days. A director leaving is one of those changes. Banks usually ask you to complete a form to change the mandate, and a change applies from the date it is made, not before.

Does fraud reimbursement cover a company?

It may. Payment rules in force since 7 October 2024 require banks to reimburse some authorised push payment scams. These are scams where the customer is tricked into sending money. The Payment Systems Regulator says the protections apply to individuals, microenterprises and charities. The maximum is £85,000 for each claim, and a bank may apply an optional £100 excess.

The regulator does not define microenterprise on that page, so a company should ask its bank whether it counts. Reimbursement is also not the same as prevention. Two approvals on a payment stop many scams before the money leaves.

What should a director do this week?

1. Ask your bank for a copy of the current mandate. Check every name on it is still someone who should have access.
2. Check the signing setting. If more than one director exists, ask whether two to sign suits the business.
3. Move helpers to the lowest access they need. Bookkeepers and accountants can often have view only access.
4. Write down who approves what. Agree it between the directors while everyone is on good terms.
5. Make a leaver checklist. Include the bank, Companies House and any saved payments or cards.

Controlling who can spend is one part of protecting profit. The other is knowing what you pay for the account, which our business bank account fees article works out for a year. You can see how similar businesses near you are doing with our free competitor report, and the Grow profit page covers how to win and keep customers. The IQ Money calculators let you put your own figures into the sums.

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