Draft Board Resolution for Writing Off Fixed Assets of Company

When a fixed asset of a company is no longer useful for the business or operation purposes, however, if it is still showing some value in the accounting records, then the Board of Directors on recommendation of the management can take a decision to write off the asset from the books of accounts of the company.

A board resolution shall be passed in the meeting of the Board of Directors with simple majority (unanimous consent is not required in this case).

Here is a specimen copy of such a board resolution for writing off fixed assets for your reference. Please refer to the provisions of the Companies Act and rules thereunder while drafting and finalising the resolution.

FORMAT

#. To write off certain fixed assets of the company.

The Managing Director informed the Board that there are some fixed assets of the company, which are no longer useful but are still appearing in the books of accounts of the company. The list of such fixed assets with their particulars was presented to the Board in Annexure-___ at the meeting for perusal. It was mentioned that some of these fixed assets have no resale value, whereas the rest may get a small amount of scrap value if sold. The management suggested that it was necessary to take a decision on such fixed assets in order to correct the books of accounts and fixed assets register accordingly. The Board discussed the matter and considered the same.

Upon motion duly passed and seconded, it was:

“RESOLVED THAT the following fixed assets of the company standing in the books of accounts and register of fixed assets as on (Date) be and is hereby written off.

S.No. | Name of the Asset | Date of Purchase | Value as on (Date)

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

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

RESOLVED FURTHER THAT necessary entries be made in the books of accounts of the company for the year ended 31st March, _______ in this regard.

RESOLVED FURTHER THAT the Managing Director and the Company Secretary of the company be and is hereby severally authorised to take necessary steps in this connection and to do all such acts, deeds and things as may be ancillary or incidental to give effect to the foregoing resolution.”