Monday, December 05, 2011

Asking for board resolution

Singapore continues to be quite backward, with ridiculous requirements that increases business cost and continues inefficient practices.

I wanted to send instructions by fax, instead of by mail. DBS Bank requires me to sign a form (which is all right) but they also require a board resolution and a letter of indemnity to the bank. I do not know why it is necessary to have this troublesome requirement. As the authorized signatory of the bank account, I can write a check to pay out all the money in the bank, but I am not allowed to give an authorization to the bank to make the transfer by fax!

This requirement is probably made on the advice of the lawyer and the security consultant. The bank does not realize that it is technically quite troublesome to pass a board resolution - and it has to and go through proper secretarial procedure and filed with ACRA. A bank with good customer service can receive the fax, and call back by telephone to verify the request (in case it is sent fraudulently), rather than insist on this indemnity.

Because of their impractical requirement, I will have to continue sending request by ordinary mail - continuing the outdated, inefficient practices. This is good news for Singapore Post but it adds to the cost of doing business and to the tons of wasteful paperwork in Singapore.

  

1 comment:

facircle said...

Perhaps its time for a change! Good that you brought this up Mr Tan

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