Board Resolution for Purchase of Car in the Name of Director

When a director is appointed in a company, the company may offer the director some perquisites in addition to the salary and allowances. One of such perquisites usually is financing a car in the name of the director.

After getting the approval of the shareholders of the company for the remuneration of the director, the board of directors can pass a resolution approving the purchase of a car for the director within the limit of money as approved by the shareholders.

You may refer the following board resolution template while drafting.

SAMPLE

“RESOLVED THAT the Company do purchase a car for an amount up to Rs. .................. (Rupees ............................................ only) in the name of and for the use by Ms. / Mr. ....... .............., Managing/ Whole-time Director of the Company.

FURTHER RESOLVED THAT the said amount to be financed by the company for the purchase of car is within the limits as authorised by special resolution passed by the members of the company in their general meeting dated ...................... be and is hereby noted.

FURTHER RESOLVED THAT (Name of the Officer), (Designation) be and is hereby authorised to sign and submit any agreement, documents and papers, on behalf of the company, as may be necessary, for the purchase of the said car in the name of the said director of the company.”

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Relevant Resolution:

Board Resolution format for Vehicle Loan / Purchase / Registration - click here

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NOTE: The resolution sample(s) here is only for reference, to help you with drafting. Do refer the exact provisions of the Act, relevant rules framed thereunder and any other applicable laws to be able to not to miss out anything important while drafting.