Quick Summary
Board Resolution is a formal decision passed by the board of directors to authorize specific actions or decisions on behalf of the company.
A Board Resolution is a formal document that records decisions made by the Board of Directors during a board meeting. It authorizes specific actions, appointments, or transactions on behalf of the company.
Matters Requiring Board Resolution
- Opening bank accounts
- Appointing or removing officers
- Approving contracts and agreements
- Authorizing loans and investments
- Declaring interim dividends
- Calling general meetings
- Approving financial statements
Types of Resolutions
- Ordinary Resolution: Passed by simple majority
- Special Resolution: Requires 3/4th majority (for shareholders)
- Unanimous Resolution: Passed by all directors
Format Requirements
- Company name and registration number
- Date and place of meeting
- Directors present
- Resolution text
- Signatures of directors
Key Points
- Formal decision by Board of Directors
- Required for major business decisions
- Recorded in minutes book
- Some resolutions need MCA filing
- Valid for specified time period