Board Resolution for Authorisation to Sign Rent Agreement
CERTIFIED TRUE COPY OF THE BOARD RESOLUTION
Passed at the Meeting of the Board of Directors held on __________ at the Registered Office of the Company.
Subject: Authorisation to Execute Rent / Lease Agreement
Mr./Ms. __________, Director of the Company, apprised the Board that the Company proposes to take suitable office premises on lease for effective functioning.
RESOLVED THAT the consent of the Board be and is hereby accorded to take on lease the office premises situated at __________ at a monthly rent of Rs. __________.
RESOLVED FURTHER THAT Mr./Ms. __________, __________, holding DIN __________, be authorised to negotiate, sign and execute the rent/lease agreement and all related documents on behalf of the Company.
Place: __________
Date:
Board Resolution for Authorisation to Sign Rent Agreement
Professional Format Guide for Indian Companies
Introduction
A Board Resolution for Authorisation to Sign Rent Agreement is a formal corporate document that empowers a designated individual to execute lease or rental agreements on behalf of a company. Under the Companies Act, 2013, a company being an artificial legal entity cannot sign documents by itself and must act through authorised representatives. This resolution formally records the Board's decision to delegate signing authority for property lease transactions.
This document is commonly required when entering into commercial lease agreements, registering rental premises with statutory authorities, or submitting tenancy-related documentation for business licences and permits. Company secretaries, directors, and administrative professionals handling real estate matters regularly prepare this resolution. It serves as proof of authorisation for landlords, registrars, and regulatory bodies, ensuring that the rental agreement is legally binding on the company.
Benefits of Using a Standard Format
Utilising a pre-drafted Board Resolution format ensures uniformity in corporate documentation and minimises the likelihood of omissions or procedural errors. A standardised template enables swift preparation, helps maintain compliance with corporate governance requirements, and provides clarity on the scope of authority granted.
This approach streamlines administrative processes and supports professional documentation practices across organisations.
Relevance to Business Registrations
When establishing a new business, securing office premises is often among the initial requirements following Company Registration. The registered office address must be intimated to the Registrar of Companies, and proof of occupancy such as a rent agreement is typically required.
Similarly, for GST Registration, businesses must furnish address proof of their principal place of business, which frequently includes a valid rent agreement along with authorisation documents. Having a properly executed Board Resolution ensures seamless compliance during such registration processes.
Board Resolution for Authorisation to Sign Rent Agreement – Sample Format
[To be printed on Company Letterhead]
Company Name: _______________________________
CIN: _______________________________
Registered Office Address: _______________________________
Email ID: _______________________________
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 situated at __________ (Address)
Subject: Authorisation to Execute Rent / Lease Agreement
Mr./Ms. __________ (Name of Director), Director of the Company, apprised the Board that for the effective functioning and operational requirements of the business, the Company proposes to take suitable office premises on lease. The draft lease/rent agreement for the proposed premises has been placed before the Board for consideration.
After due deliberation and consideration of the terms and conditions of the proposed lease arrangement, the Board passed the following resolutions:
RESOLVED THAT the consent of the Board of Directors be and is hereby accorded to take on lease the office premises situated at __________ (Complete Address of Leased Premises) at a monthly rent of Rs. __________ (Rupees __________ only), on such terms and conditions as contained in the draft rent/lease agreement placed before the Board.
RESOLVED FURTHER THAT Mr./Ms. __________ (Name), __________ (Designation), holding DIN: __________ (if applicable), be and is hereby authorised to represent the Company and to negotiate, finalise, sign, and execute the rent/lease agreement and all related documents, deeds, undertakings, and correspondence on behalf of the Company, and to take all necessary actions as may be required to give effect to this resolution.
CERTIFIED TRUE COPY
For __________ (Company Name)
Signature: _______________________________
Name: _______________________________
Designation: _______________________________
DIN: _______________________________
Date: _______________________________
Place: _______________________________
Frequently Asked Questions
1. Which resolution is required for authorisation to sign a rent agreement?
A Board Resolution passed at a duly convened meeting of the Board of Directors is required to authorise an individual to sign a rent agreement on behalf of the company. This resolution delegates the signing authority to a specific person and serves as formal evidence that the company has approved the lease transaction.
2. Can a Board Resolution be passed without convening a Board Meeting?
Yes, under Section 175 of the Companies Act, 2013, a resolution may be passed by circulation instead of at a Board Meeting, provided it is approved by a majority of directors entitled to vote. For routine authorisations like signing rent agreements, a circular resolution is generally permissible.
3. Who can be an authorised signatory?
An authorised signatory can be any director, key managerial personnel, or any other officer of the company designated by the Board. Their name, designation, and DIN (for directors) must be clearly stated in the resolution.
4. Is the signature of all directors mandatory?
No. The resolution must be passed with the requisite quorum present, and a certified true copy is typically signed by the Chairperson or an authorised director.
5. Is professional certification mandatory?
Professional certification by a Company Secretary or Chartered Accountant is not legally mandatory. However, some landlords or authorities may request a professionally certified copy for additional verification.