authorised signatory
Authorised Signatory means the person a company, church, cooperative or family account officially permits to sign cheques and approve payments on its behalf.
In plain English
Every family has that one aunty whose signature moves the whole account, whether it is the church building fund or the cooperative society savings. In banking, that permission is more than trust between people, it is a formal arrangement the bank keeps on file, and it is called being an authorised signatory.
When a business, a club, a trust or any organisation opens an account, the bank does more than hand out access to whoever walks in with the account number. The organisation submits a mandate, a document naming exactly who can sign cheques, approve transfers, or instruct the bank, and how many signatures are needed for each amount. That named person or persons become the authorised signatories, and the bank checks their specimen signature against every instruction that comes in.
In Nigeria, this shows up clearly with cooperative societies and small businesses. Say three friends in Lagos run a supply business together and open a current account for it. The bank mandate might state that any withdrawal above ₦500,000 needs two of the three signatures, while smaller amounts need just one. That way, no single partner can calmly empty the account, and the bank has clear instructions to follow.
In the United Kingdom, the same idea runs through community groups, small charities and limited companies. A parish council account might list the treasurer and the chairperson as the two authorised signatories, and the bank will reject any cheque that only carries one signature when two are required.
Changing signatories is not casual either. If a director resigns or a signatory passes on, the organisation must formally update the bank with fresh paperwork, because the bank will not simply take someone's word for it. This protects everyone, the organisation, the bank and the people relying on that account being safe.
A cooperative account requires two authorised signatories for any transfer above ₦300,000. A ₦450,000 payment to a supplier goes through only after both the treasurer and the secretary sign the instruction, giving the group a built in check against fraud or mistakes.
Questions people ask
Can an authorised signatory be removed from an account?
Yes. The organisation simply submits a fresh mandate to the bank, often with a board resolution or committee minutes, naming the new signatories and confirming the old one no longer has authority.
Does an authorised signatory own the money in the account?
No. Ownership stays with the account holder, whether that is a company, church, cooperative or trust. The signatory only has permission to instruct the bank on transactions, nothing more.
What happens if a cheque is signed by someone who is not an authorised signatory?
The bank should reject it. Banks check signatures against the specimen cards on file, and any mismatch usually means the payment gets returned or held until the proper signatory confirms it.
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