Board resolution format for approving the annual business plan and budget under Section 179(1), with capex budget, funding plan and variance limits.
“RESOLVED THAT pursuant to Section 179(1) and other applicable provisions, if any, of the Companies Act, 2013 and the Articles of Association of the Company, the annual business plan and budget of the Company for the financial year [●], comprising the revenue and operating expenditure budget, the capital expenditure budget of ₹[●] (Rupees [●] only) and the funding plan, as placed before the Board, be and is hereby approved.
RESOLVED FURTHER THAT expenditure within the approved budget may be incurred by the officers of the Company in accordance with the Delegation of Authority approved by the Board, any expenditure exceeding the budget by more than [●] per cent shall require the prior approval of the Board, and the approval of the budget shall not by itself authorise any borrowing, investment, loan, guarantee or security, each of which shall be approved separately as required under Section 179(3) of the Companies Act, 2013.
RESOLVED FURTHER THAT the [Managing Director / Chief Executive Officer] and the Chief Financial Officer of the Company be and are hereby severally authorised to communicate the approved budget within the Company, monitor performance against it and report to the Board every quarter, and to do all such acts, deeds and things as may be necessary for giving effect to this resolution.”
No rules under this Section yet.