15 October 2008
In a private company loan given to the employee does it requires Board resolution or some approval from the Board... kindly suggest... email id agarwal.sarika@in.kline.com
15 October 2008
The management of the company is vested collectively with the Board of Directors. The Board of directors can delegate, through a resolution of theirs, the powers (which are not expressly prohibited for delegation under the Companies Act or by their Articles)to the executives appointed for the purpose, specifying the parameters of sanction and also the limit. Loan to employees is such a power.
If there is no delegation Board will have to pass a resolution for granting loans to employees.
15 October 2008
For giving loans to the employee of the organisation in a private company is Board resolution required for delegation to the executives the power to give loans to the employees. It is done normally through Head HR/ Accounts Head
The Managing director placed before the Board a paper relating to the request from employees to consider personal loan in the case of exigencies, and the recommendation of the management to consider the same on merrits based on rules and regulation to be framed in this regard. The Board studied the papers in detail and resolved that the MD is authorised to sanction loans to employees on such terms as are considered appropriate by the panel on the basis of a recommendation from a committee consisting of the CEO, CFO and the Chief of HRD. The Board further resolved to fix a ceiling on the total loan at Rs..... and Rs.... per person.
CAclubindia
