Board Resolution format for Vehicle Loan Purchase Registration

A Company may buy a car or any other motor vehicle for the use by its Director(s) or any other managerial personnel.

The Board of Directors has to approve such purchase in accordance with the monetary limit approved by the shareholders of the company in their general meeting for that particular director or managerial personnel.

Following is a template of such board resolution, you may refer while drafting.

SAMPLE

“RESOLVED THAT the consent of the Board of Directors of the Company be and is hereby accorded for the purchase of a (type/ name of the vehicle) (the "vehicle") to be used by Mr. / Ms. (Name of the Director / Managerial Personnel / Employee), (Designation), by taking a loan of Rs. ................... (Rupees ........................... only) from ................... Bank Limited, ...branch name.. (the "Bank").

FURTHER RESOLVED THAT (Name of the Officer), (Designation) be and is hereby authorised to sign and execute the loan agreement(s), hypothecation deed(s), post dated cheque(s) and any other document(s) or paper(s), on behalf of the company, as may be necessary for the purchase of the vehicle.

FURTHER RESOLVED THAT the vehicle be hypothecated in favour of the Bank on the following terms:
a) loan shall be repayable within ... years ... months;
b) loan shall be repaid in monthly/ quarterly installments;
c) at a rate of interest on the outstanding amount shall be ....% p.a.; and
d) on such terms and conditions as per the draft loan agreement and hypothecation deed tabled before the Board.

FURTHER RESOLVED THAT (Name of the Managing Director), (Designation) be and is hereby authorised to sign a true copy of the foregoing resolution and forward the same of the bank.”

...................................................

Relevant Resolution:

Board Resolution format for purchase of car in the name of Director - click here

...................................................

NOTE: The resolution sample(s) here is only for reference, to help you with drafting. Do refer the exact provisions of the Act, relevant rules framed thereunder and any other applicable laws to be able to not to miss out anything important while drafting.