Search Resolutions Here

Format of Board Resolution for Formation of Gratuity Trust

An employer (company) creates a Gratuity Trust to manage the gratuity liability for its employees.

The main intention for creation of a Gratuity Trust is to manage the funds contributed by the employer and to pay the gratuity amount to the employee at the time of retirement or separation.

board resolution for opening gratuity trustEmployer makes periodical contribution to the gratuity fund to ensure that at the time or retirement or separation there is no default in payment to the employee from the company's part. This is done to protect the interest of the employees.

The employer can entrust Gratuity Fund management to an insurer company. Such funds are generally invested in the securities as approved at the time of creation of trust. Employers have the flexibility of choice of investments given by such insurers.

(modify it suitably as necessary)

#. Formation of a Gratuity Trust for the Employees of the Company

“RESOLVED THAT a 'Gratuity Trust' be and is hereby formed in terms of the provisions of the Income-tax Act, 1961, the Indian Trusts Act, 1882 and the Payment of Gratuity Act, 1972, to manage the gratuity fund in respect of the employees of the company.

RESOLVED FURTHER THAT the Board of Trustees of the said Gratuity Trust be consist of:

 1) Name, Designation      -     Chairman
 2) Name, Designation      -     Member
 3) Name, Designation      -     Member

RESOLVED FURTHER THAT the draft of Trust Deed for Gratuity Trust as tabled before the meeting, be and is hereby approved and that ......................., Managing Director be and is hereby authorised to sign it on behalf of the company and (Name), (Designation), Chairman of the Gratuity Trust be and is hereby authorised to sign it on behalf of the Trust.

RESOLVED FURTHER THAT (Name), (Designation) and (Name), (Designation) be and is hereby severally authorised to file necessary applications, forms and documents with the appropriate Income-tax authorities and other authorities in this regard, as may be required.

RESOLVED FURTHER THAT (Name), (Designation) and (Name), (Designation) be and is hereby severally authorised to entrust the management of the Gratuity Fund with any insurer company and to choose any plan or scheme for investment of the funds, as may be deemed appropriate in their absolute discretion.

RESOLVED FURTHER THAT any two Directors of the company be and is hereby jointly authorised to provide a certified copy of the foregoing resolutions to all such appropriate statutory authorities, as may be necessary.”


Post a Comment

Leave Your Comments Here