Board resolution
This query is : Resolved
Shridhar Hegde
(Querist)
19 February 2016
It is compulsory to conduct board resolution for written off debtors?? what is the section for that?
Ganeshbabu K
(Expert)
19 February 2016
To my knowledge no section of company act mandates written off debtors,
But The board of directors have accountability to the shareholders to demonstrate why the debts have become bad.So generally a Board resolution should be prepared demonstrating detailed way what are steps taken by company to recover debt and why it is written off now as bad debt.(it may be mandatory if authorised to do so by articles of association)
But in case of Unrealised export debtors, below procedure is mandatory before written off
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=7886&Mode=0
But The board of directors have accountability to the shareholders to demonstrate why the debts have become bad.So generally a Board resolution should be prepared demonstrating detailed way what are steps taken by company to recover debt and why it is written off now as bad debt.(it may be mandatory if authorised to do so by articles of association)
But in case of Unrealised export debtors, below procedure is mandatory before written off
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=7886&Mode=0
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Shridhar Hegde
(Querist)
20 February 2016
Can a managing director's current account show debit balance in the company accounts?? Please mention the section appliacble if any.
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