Board Resolution for Reimbursement of Expenses to Directors

Every company has a certain policy for reimbursement of expenses to its employees, officers and directors. Everybody has to follow that while claiming reimbursement of expenses incurred by them for official purposes.

Sometimes, the consent of the Board of Directors may be sought for seeking approval or ratification of expenses incurred by one or more directors/employees for official reasons and for its reimbursement. Here are samples of such board resolutions for reimbursement of expenses.

FORMAT #1

#. To Approve the Reimbursement of Expenses incurred by the Director

The Managing Director informed the Board that (Name of the Director), ______ Director had gone on a foreign tour last month for __ days for business purposes to meet two prospective clients. (Name of the Director), ______ Director appraised the Board on the successful visit and its business prospects. The statement on expenses incurred on the tour was tabled at the meeting for approval. The Board considered the same.

Upon motion duly passed and seconded, it was:

“RESOLVED THAT the statement placed before the Board in Annexure-___ and initialed by the Chairperson for the purpose of identification on expenses incurred by (Name of the Director), ______ Director with regard to his/her tour to (Name of the Country) for business purposes to meet the prospective clients of the company be and is hereby approved.

FURTHER RESOLVED THAT (Name of the Director), ______ Director be reimbursed from the funds of the company the expenses incurred by him/her as shown in the aforesaid statement.”

FORMAT #2

“RESOLVED THAT the draft Expenses Reimbursement Policy of the company as given in Annexure-__ tabled before the Board in the meeting and initialed by the Chairperson for the purpose of identification be and is hereby approved.”

FORMAT #3

#. Reimbursement of Traveling Expenses to the Directors

“RESOLVED THAT the reimbursement of the following sums to the respective directors of the company towards traveling and out-of-pocket expenses incurred by them for attending the ___th meeting of the Board of Directors of the company held on (Date) at (Venue) be and is hereby ratified and be reimbursed out of the funds of the company.

1. (Name of the Director), ______ Director: (Amount),

2. (Name of the Director), ______ Director: (Amount), and

3. (Name of the Director), ______ Director: (Amount).”

FORMAT #4

“RESOLVED THAT the following policy for reimbursement of expenses incurred by the Board members be and is hereby approved.

1. The expenses shall be incurred in the performance of functions and activities authorised by the Board to the member.

2. The expenses shall be incurred in the performance of duties and responsibilities as a Director of the company.

3. Proper statement and voucher with the details of expenses shall be prepared and submitted in the format prescribed by the company.

4. Approval of the Chairman or the Managing Director shall be taken for claiming the reimbursement and before submitting it to the Finance Department for processing the payment.

5. Expenses on alcoholic beverages, club fees, entertainment expenses, golf fees, event fees and similar expenses shall not exceed a sum of (Amount) per month per director.

6. Reimbursement of travel, meals, and lodging expenses for domestic tours shall be limited to (Amount) per tour. The Board's approval shall be taken for expenses incurred during foreign tours.

7. Any other expenses shall be reimbursed only after taking prior approval of the Board. In case of urgent matters, the Board member shall seek approval post incurring the expenses.”