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Querist : Anonymous

Querist : Anonymous (Querist)

18 January 2010 Hi everyone

Will anyone please let me know that can board meeting be conducted on the day on which company is taking loan from its directors.If yes then can anyone please provide me with the format of resolution borrowing unsecured loan from its directors please.

Ankur Garg

Ankur Garg (Expert)

19 January 2010 Hello,

Board meeting is possible on the transaction date.

Find below the resolution:

RESOLVED THAT pursuant to the Section 292 and/or other relevant provisions of the Companies Act, 1956, if any, the Board of Directors of the Company be and is hereby authorised to borrow such sums of money from Mr. Ajay Jain, Director of the company for the purpose of the business of the Company provided that the moneys to be borrowed together with the moneys already borrowed by the Company (apart form temporary loans obtained from the Company's bankers in the ordinary course of business) will not exceed the aggregate of the Company's paid-up capital and free reserves, that is to say, reserves not set apart for any specific purpose.â€
RESOLVED FURTHER THAT for the purpose of giving effect to this resolution, the Board be and is hereby authorized to do all such acts, deeds, matters and things as it may in its absolute discretion consider necessary, proper or desirable and to settle any question, difficulty or doubt that may arise in this regard.â€

RESOLVED FURTHER THAT any Director of the Company be and is hereby authorized to execute, sign and issue for and on behalf of the company, the Loan Agreement, any other agreements, deeds, documents and writings as may be required in relation to the above facility and to do all such acts, deeds and things necessary for giving effect to this resolution.

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