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Urgent- PLS HELP

parveen (trainee) (89 Points)

07 July 2010

my co had availed loan from bank and documentation were done by MD now bank require that a resolution be passed by the board conveying acceptance to that loan.

pls provide me draft of such resolution.

thanks in advance

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6 Replies

Nitin Grover (CS) (1228 Points)
Replied 07 July 2010

Dear Praveen

If company has availed Loan then how any company can accept the loan? and their is no need for Resolution.

Company must file Form 8.

Regards

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vivek (CS) (751 Points)
Replied 07 July 2010

It could be somhow like this:-

“RESOLVED THAT the Company do avail the loan/credit facilities of Rs. -------------- from ---------------------- Bank, ----------------------- in the form of CC Limit/ Demand Loan/ Bank Guarantee as the case may be at the option of the Company and approval of the bank from time to time on such terms and conditions as stipulated by the bank.

RESOLVED FURTHER THAT Mr. -------------, Managing Director, Mr. ----------------, Directors of the Company be and are hereby severally authorized to do all the acts in this connection and enter into necessary agreement with the said Bank."

vivek (CS) (751 Points)
Replied 07 July 2010

This resolution is for acceptance of loan granted by the bank

parveen (trainee) (89 Points)
Replied 08 July 2010

Good Morning,

See the issue is my co had availed a loan and most of the documentation was done by the MD and Now the bank is requiring same be consented to by board at its meeting.

Thanks for reply.

Praveen Maniyar (Professional) (141 Points)
Replied 08 July 2010

Dear Praveen,

The bank is requiring resolution stating the power of the MD to take loan, this has to be done before taking loan. However format of resolution given by vivek can be used.

Regards,

Praveen Maniyar