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Board resolution for overdraft facility

Chickoo M Philip (NBFC ) (33 Points)

27 November 2012

Dear Friends,

please help me in making a board resolution for getting overdraft facility from bank against fixed assets of directors.

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4 Replies

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 27 November 2012

“RESOLVED THAT the Company do obtain various credit facilities from the ……….. Bank to the tune of ` ……….. Crores (total of all advance, CC limits and term loans) by way of overdrafts/ term loan…………… and such other facilities as may be agreed upon from time to time between the Bank and the company, secured by hypothecation / pledge of the Company’s entire goods, movables and other assets, present and future, including documents of title to goods and other assets such as book-debts, outstanding moneys, receivables, claims, bills, invoices, documents, contracts, engagements, securities, investments and rights and all machinery, present and future, and further secured by deposit of all title deeds of the existing immovable properties of the Company with intent to create a security thereon in favour of the Bank and personal guarantees of Shri ……………… and Shri…………., Directors, on such terms and conditions as may be specified by the Bank”.

“FURTHER RESOLVED that Shri ……………… and Shri…………., Directors, be and are hereby jointly and / or severally authorised to appear at the bank and deposit required documents / title deeds of the Company’s immovable properties and to make a declaration on behalf of the Company that the said deposit has been made with intent to create security by way of mortgage thereon in favour of the Bank and to execute the necessary security documents required by the Bank in this connection and that the Common Seal of the company be affixed wherever necessary in the presence of Shri ………………, Director in terms of Articles of Association of the Company”.

“FURTHER RESOLVED that the enclosed Arrangement Letter of the Bank which has been placed before the Directors be and is hereby approved for execution by the Company in accordance with the Articles of Association of the Company”.

“FURTHER RESOLVED that the Revival letters as well as any other instrument document or paper including revival letters as may be required by the Bank to be executed by the Company in respect of the said credit facilities from time to time be executed by the Company under its Common Seal to be affixed in the presence of Shri Mahesh Swarup Agarwal, Chairman Emeritus or Shri Manoj Agarwal, Managing Director in terms of Articles of Association of the Company.”

“FURTHER RESOLVED that ……………… and Shri…………., Directors, be and are hereby jointly and / or severally authorized to sign and submit various forms and documents to be submitted with Registrar of Companies from time to time.”

“FURTHER RESOLVED that a certified copy of the resolution be forwarded to ……. ………………….Bank for their record”.