Draft Board Resolution for Making Fixed Deposit (FD) with Bank

When a company has some surplus funds after setting aside funds needed for its products/services, it looks for investment opportunities in other places. One of such popular and easy investment types is investment in fixed deposits.

Approval of the board of directors of a company is sought before making investment in fixed deposit schemes of any financial institutions.

A resolution is passed in the meeting of the board of directors approving the opening of a fixed deposit account and authorising certain company's officials to sign the documents, renew or withdraw money when necessary.

The samples of such board resolutions for investment in fixed deposits are given hereunder for your reference. Some banks provide their own template of board resolution for this purpose, which you may use.

FORMAT #1

“RESOLVED THAT fixed deposit account(s) be opened with _________ Bank Limited, at _______ Branch ("the Bank") in the name of ________________ Limited ("the Company") for an amount not exceeding Rs. _________ and for such period(s) as may be considered expedient out of the surplus funds of the company available for investment.

FURTHER RESOLVED THAT (Name of the Person), (Designation) and (Name of the Person), (Designation) ("the Authorised Signatories") be and is hereby jointly authorised to sign and deliver the application forms and other documents as may be required for opening the fixed deposit account(s).

FURTHER RESOLVED THAT the Authorised Signatories do accept on behalf of the company the terms and conditions applicable on the fixed deposit account(s) as may be mentioned in the application forms, at the official website of the Bank and as notified by the Bank from time to time in connection with the fixed deposit account(s).

FURTHER RESOLVED THAT the Authorised Signatories be and is hereby jointly authorised to open, renew, withdraw including premature withdrawal, receive maturity amount and interest thereon, endorse or discharge fixed deposit receipts, or otherwise provide instructions related to fixed deposits from time to time as may be necessary and to do all such acts, deeds and things as may be necessary in connection with the foregoing resolutions.

FURTHER RESOLVED THAT (Name of the Managing Director), Managing Director of the company be and is hereby authorised to sign and forward a true copy of the foregoing resolutions to the bank as and when necessary.”

FORMAT #2

“RESOLVED THAT pursuant to Section 179(3)(e) and other applicable provisions, if any, of the Companies Act, 2013 and rules made thereunder, including any amendments thereto, consent of the Board of Directors be and is hereby accorded to invest up to Rs. ________ (Rupees _______________ only) in any Fixed Deposit Schemes of _______ Bank, ______ Branch and that the said investment be made from the surplus funds available with the company.

RESOLVED FURTHER THAT (Name of the Officer/Director), (Title) and (Name of the Officer/Director), (Title) of the company be and is hereby jointly/severally authorised to sign and execute application form(s), declarations and documents, and to receive the maturity amount of the said Fixed Deposit Account(s) including the interest, and to renew the fixed deposit(s) for such period(s) as may be necessary in consultation with the Managing Director.

RESOLVED FURTHER THAT the company do accept the terms and conditions as contained in the application form(s) for the fixed deposit account(s), and such other terms and conditions in connection with the fixed deposit scheme(s) as may be notified by the Bank at its website and through other printed or digital modes.

RESOLVED FURTHER THAT (Name of the Officer/Director), (Designation) and (Name of the Officer/Director), (Designation) of the company be and is hereby jointly/severally authorised to do all such acts, deeds and things as may be necessary to give effect to the foregoing resolutions.

RESOLVED FURTHER THAT any two directors of the company be and is hereby jointly authorised to sign and forward a true copy of the foregoing resolutions to the concerned bank and other authorities as may be necessary.”