Specimen Board Resolution for Approving Annual Budget

It is a usual practice for the management of a company to present the budget annually/monthly/quarterly to the board of directors in its periodical meeting.

The suggestion of the learned members of the board is sought on the budget. The management should explain to the board the primary assumptions and risk factors taken into account while preparing the budget. It would be advisable that the management should prepare in advance a set of questions that may be asked by the board during the presentation and the answers to those.

The approval of the board of directors is sought at the meeting of the board. You can prepare a simple resolution mentioning the approval of the budget. You may include in it the suggestions given by the board on the budget.

Examples of such board resolutions are given hereunder for your reference. Modify it appropriately. Please refer to relevant laws before finalising a resolution.

FORMAT #1

#. To Approve Budget for the Financial Year _____

The Chief Financial Officer appraised the Board on the annual budget of the company for the financial year _______ with detailed plan on sourcing and application of funds in relation to it. The Board discussed it and suggested the management to keep the cost under control and to take appropriate measures to reduce it at necessary places.

Upon motion duly passed and seconded, it was:

“RESOLVED THAT the annual budget of the company for the financial year _______ tabled before the meeting at Annexure ____ as submitted by the Chief Financial Officer and initialed by the Chairperson for identification be and is hereby approved.

RESOLVED FURTHER THAT the funds required to meet the expenses heads as planned for in the budget be allocated as and when necessary and that all the concerned officers and employees of the company be and is hereby authorised to do all such acts as may be necessary to carry out the deeds intended in the budget.

RESOLVED FURTHER THAT the management do present before the Board for review at each meeting a report on the performance of the company highlighting budget versus actual results.

RESOLVED FURTHER THAT the actions taken by the management from April 1, (Year) till date and the expenses incurred thereof as presented to the Board at Annexure ____ initialed by the Chairperson for identification be and is hereby ratified and confirmed.

RESOLVED FURTHER THAT (Name of the Director/Officer), (Designation) be and is hereby authorised to do all such acts, deeds and things as may be necessary to give effect to the foregoing resolution.”

FORMAT #2

#. Approval of Annual Budget of the Company

“RESOLVED THAT the consent of the Board of Directors be and is hereby accorded for approval of the annual budget of the company for the financial year ______ presented at the meeting and initialed by the Chairman for identification.

FURTHER RESOLVED THAT (Name of the Director/Officer), (Designation) and (Name of the Director/Officer), (Designation) be and is hereby authorised to do all such acts, deeds, things and matters as may be necessary to give effect to the foregoing resolution.”