Enter Renewal of Cash Credit (CC) Limit
Document Preview
Board Resolution for Sale of Property
CERTIFIED TRUE COPY OF THE BOARD RESOLUTION
Renewal of Cash Credit / Overdraft Facility
A meeting of the Board of Directors of ________________ was duly convened and held on __________ at the Registered Office of the Company.
RESOLVED THAT the Board hereby accords its consent to request __________, __________ to renew the existing Cash Credit / Overdraft facility to the extent of Rs. __________.
RESOLVED FURTHER THAT Mr./Ms. __________, __________, holding DIN __________, be authorised to execute all documents and create or modify charge in favour of the Bank.
RESOLVED FURTHER THAT the authorised person be empowered to digitally sign and file e-forms with MCA under the Companies Act, 2013.
What is a Board Resolution for Renewal of Cash Credit (CC) Limit?
Professional Format Guide for Indian Companies
A Board Resolution for Renewal of Cash Credit (CC) Limit is a formal corporate document that records the decision of a company’s Board of Directors to renew or extend an existing cash credit or overdraft facility with a bank. Cash credit facilities are generally sanctioned for a limited period, usually one year, and require periodic renewal to continue availing working capital finance.
Under the Companies Act, 2013, decisions relating to borrowing arrangements must be approved by the Board through a validly passed resolution. Banks require this resolution as part of their renewal documentation to ensure that the borrowing has been duly authorised by the company.
Finance managers, company secretaries, and directors handling banking relationships regularly prepare this resolution. It also authorises designated individuals to execute renewal documents, create or modify charges, and operate the cash credit or overdraft account.
Board Resolution for Renewal of Cash Credit (CC) Limit – Sample Format
[To be printed on Company Letterhead]
Company Name: _______________________________
CIN: _______________________________
Registered Office Address: _______________________________
Email: _______________________________
CERTIFIED TRUE COPY OF THE BOARD RESOLUTION
Passed at the Meeting of the Board of Directors held on __________ (Date) at __________ (Time) at the Registered Office of the Company.
Subject: Renewal of Cash Credit / Overdraft Facility
RESOLVED THAT the consent of the Board of Directors be and is hereby accorded to request __________ (Name of Bank), __________ (Branch Name) to renew the existing Cash Credit / Overdraft facility to the extent of Rs. __________ (Rupees __________ only).
RESOLVED FURTHER THAT Mr./Ms. __________ (Name), __________ (Designation), holding DIN __________, be and is hereby authorised to execute all documents and create or modify charge as required by the Bank.
RESOLVED FURTHER THAT the authorised person be empowered to digitally sign and file the requisite e-forms with the Ministry of Corporate Affairs under the Companies Act, 2013.
For and on behalf of __________ (Company Name)
Signature: _______________________________
Name: _______________________________
Designation: _______________________________
DIN: _______________________________
Date: _______________________________
Place: _______________________________
Frequently Asked Questions
Who can be considered an authorised signatory for renewal of CC limit?
Any director, managing director, or key managerial personnel specifically authorised by the Board can act as the authorised signatory. The person’s name, designation, and DIN must be clearly mentioned in the resolution.
Is signature of all directors mandatory?
No. The resolution must be passed with the requisite quorum at a Board Meeting. A certified true copy is generally signed by the Chairperson or an authorised director.
Which resolution is required for renewal of CC limit?
A Board Resolution passed at a duly convened Board Meeting is required. If borrowing exceeds limits under Section 180(1)(c), a Special Resolution may also be required.
Is professional certification mandatory?
Professional certification is not legally mandatory, but some banks may require a certified copy by a Company Secretary or Chartered Accountant.
Can the resolution be passed without a Board Meeting?
Yes. Under Section 175 of the Companies Act, 2013, a resolution may be passed by circulation, subject to bank acceptance.