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Board Resolution for Execution of Indemnity Bond (Format)

The approval of the board of directors of a company is very much necessary for an officer before executing any indemnity bond on behalf of the company.

board resolution for execution of indemnity bondIn the absence of the board's approval, if an officer signs an indemnity bond on behalf of the company in relation to any agreement or a deal or otherwise with organisation(s) or individual(s) and if any loss or damage occurs in that matter requiring the company to make good of any claims to the party in concern, then the authority of that officer to give such indemnity bond may become questionable and that officer may face legal action in this connection.

Hence, only with the authority of a board resolution, an official should execute one or more indemnity bonds on behalf of the company.

Templates of board resolutions for execution of indemnity bond are provided hereunder for reference—


SAMPLE #1

#. Authorisation for Signing of Indemnity Bond

“RESOLVED THAT (Name of the Officer), (Designation) be and is hereby authorised to sign and execute an indemnity bond in favour of (Name of the Party/ Organisation) with regard to the work to be carried out for the performance of the contract dated ................ entered into between the company and the said party for the purpose of rendering .............. services and that the indemnity amount be limited to (amount in figures) (amount in words).”



SAMPLE #2

#. To Authorise to Execute Indemnity Bond under a Contract with (client name)

“RESOLVED THAT (Name of the Officer), (Designation) and (Name of the Officer), (Designation) be and are hereby jointly authorised to sign and execute indemnity bond(s) in favour of (Name of the Party/ Organisation) as required under the contract dated ................ entered into between the company and (Name of the Party/ Organisation).

FURTHER RESOLVED THAT the indemnity amount under the said indemnity bond(s) be limited to the extent of (amount) in total.”

Comments

  1. vaibhav sakhare10/08/2019

    this was useful. thank you.

    ReplyDelete

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