Board resolution format for approving a capital expenditure proposal under Section 179(1), with project cost, funding sources and cost-overrun limit.
“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, approval of the Board be and is hereby accorded to the capital expenditure proposal for [description of project / asset] at an estimated cost of ₹[●] (Rupees [●] only), as set out in the proposal placed before the Board, to be funded through [internal accruals / borrowings / equity / a combination of them].
RESOLVED FURTHER THAT any increase in the project cost beyond [●] per cent of the approved amount shall require the prior approval of the Board, and any borrowing, investment of funds, loan, guarantee or security required for the project shall be approved by a separate resolution of the Board passed at a meeting under Section 179(3) of the Companies Act, 2013.
RESOLVED FURTHER THAT Mr./Ms. [●], [Managing Director / Chief Executive Officer] and Mr./Ms. [●], Chief Financial Officer, be and are hereby severally authorised to invite and evaluate quotations, negotiate and finalise terms with vendors, place orders and sign agreements within the approved cost, 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.