Draft of Resolution to be obtained in respect of advances to limited companies
Copy of the resolution passed at a meeting of the Board of Directors of Messrs _______________ held at __________ on _________.
Mr. _____________________ Chairman/Managing Director/Director advised the Board that the Company’s bankers, __________ Bank, __________ Branch, were approached for financial accommodation and that they have since sanctioned borrowing arrangements, details of which were tabled. After discussion, it was unanimously resolved that:
- The Company do borrow, for purposes of the Company, from the said Bank, through Cash Credit/Overdraft/Pronote Account up to an extent not exceeding Rs. ___________ (Rupees __________ only) outstanding at anyone time, repayable on demand, to Bank from time to time/ hypothecation of its entire movable assets, both present and future, comprised of _____________.
- The aforesaid account/s, either in debit or in credit, be operated upon, on behalf of the Company, by anyone/two of the following Directors/ Officers of the Company severally/jointly and the said Bank be and is hereby instructed and authorised to honour all cheques, bills and other documents of the Company drawn, endorsed, accepted or made on behalf of the Company by anyone/two of the abovenamed Directors/ Officers in the manner aforesaid and to act on any instructions given by them relating to the account.
- / Ms._____________
- / Ms._____________
- / Ms._____________
- That the signatures of anyone/two of the above Directors/Officers of the Company shall be sufficient for endorsement of negotiable instru- ments deposited in the said account/s for collection or discount or negotiation by the Bank, or for pledging securities or for taking delivery thereof or to draw Bills of Exchange, on behalf of the Company, on sundry parties and submit the same to Bank for discount or purchase or for advances to the Company there against.
- / Ms._______________ and/or Mr./Ms. ______________ Directors of the Company be and he/they is/are hereby authorised jointly/individually to execute, on behalf of the Company, all the security document/documents which is/are hereby approved required by the Bank in this connection to put the aforesaid arrangement to effect. That copies of the resolution, certified to be true by the Chairman and another Director, be submitted to the said Bank for their records, to remain operative until amended or rescinded by a subsequent resolution under intimation to the Bank.
Sd/ Director
Certified to be True Copy Sd/Chairman.
