resolution required for purchase of car on loan

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This query is : Resolved

sanjay (Querist)

09 October 2010 Hello
All Experts and Freinds

I am an accountant in pvt ltd co. The Co has taken a car for its director on lease with the bank for 5 years. My Querry is as folows:
Whether the Co has to pass the resolution in the Board Meeting? If yes then Kindly send the proforma of the resolution.
Whether the Co has to furnish the details to ROC, if yes then advise the period upto what date the co has to do so.

It is Urgent. Kindly advise.
thanks and regards
sanjay

UMA SHANKER SHARDA

UMA SHANKER SHARDA (Expert)

09 October 2010 Yes, Board resolution is required. Generally the fincing companies are having their own performa of resolution. But in case of Banks, you may pass the following resolution
"RESOLVED THAT consent of the Board be and is hereby accorded to purchase a car as per performa invoice placed before the Board.
FURTHER RESOLVED THAT the company may avail finance from ABC Bank to purchase the car not exceedind Rs.??? and Shri ???, director be and is hereby authorised on beahlf of the Board to execute the necessary documents as may be required to get the finance to purchase the car and common seal of the Company be affixed in presence of Shri???, who will sign the same in token thereof (as per AOA of the Company).

There is no need to file form 8 in ROC for such finance.

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