Board Resolution Format

Sample / Template / Example of Board Resolution in India for Reduction in Share Face Value & Declaring Sick Unit in word/.doc

The Board considered the issues involved and passed the following resolutions:

"RESOLVED   THAT  subject  to  the  approval  of  Board   for  Industrial and Financial Reconstruction (hereinafter referred  to "BIFR") under the provisions of Sick Industrial  Companies     (Special  Provisions)  Act, 1985,  (hereinafter  referred  to     `SICA') and other approvals, as may be required, if any,  the  Share Capital of the Company be reduced by bringing down  the   face  value  of  each  Equity Share  from  Rs.  10/-  to  Rs. .........  each Equity Share thereby reducing the  Authorised  Share   Capital   to Rs..................  (Rs............................. ) consisting of  ------------------ Equity  Shares  of  Rs..........  each  Share  and    Issued,  Subscribed   and   Paid-up   Capital   to    Rs..............  (Rs.......................) consisting of ----------------- Equity  Shares of Rs...... each Share.

RESOLVED  FURTHER THAT such reduction of  Issued,  Subscribed and Paid-up Equity Share Capital of Rs............. and a sum of  Rs. ---------/-  lying  to the  credit  of  Shares  Forfeited    Account  be  adjusted against the accumulated losses  of  the  Company  standing on the date of receipt of BIFR approval  or on  such  date  as  may be specified by  the  BIFR  for  this  purpose.

RESOLVED   FURTHER THAT an application be made to  Board  for Industrial  and Financial Reconstruction (BIFR)  for  seeking  modification to the Rehabilitation Scheme sanctioned by  BIFR  Order  dt.  2nd February '14, such modification to include, inter alia, reduction of Equity Share Capital, as mentioned hereinabove.

RESOLVED FURTHER THAT  Shri --------------- Directors  and/or Shri ---------------------, Managing Director and  Shri ----------------------, Manager (Finance & Accounts) of the Company be and  are hereby authorised severally to make  application  to Board for Industrial and Financial Reconstruction, write such letters, correspondence,  make such statements,    representations  either in person or through  correspondence, from  time  to  time,  as may be  required  ,  to  Board  for Industrial   and  Financial  Reconstruction  or   any   other  authority established under the provisions of Sick Industrial (Special  Provisions)  Act, 1985,   including  the  Appellate Authority for Industrial and Financial Reconstruction and  to Industrial Development Bank of India, the Stock Exchanges and all other concerned parties in this respect.

RESOLVED FURTHER that a copy of the application to be made to BIFR  seeking  their  approval  for  aforesaid  reduction  be  submitted  to  SBI,  the Monitoring  Agency  and  all  other  concerned parties including the Financial Institutiions/Banks  for  their  information and necessary action and any  of  the  persons  mentioned  hereinabove are authorised to  deal  with SBI.

RESOLVED  FURTHER THAT Shri -----------, Directors and Shri --------------------, Managing Director be and  are hereby    authorised   severally   to   appoint    authorised    representatives,    advocates,   pleaders,   attorneys    for representing the Company before the Board for Industrial  and Financial   Reconstruction   or   Appellate   Authority   for Industrial   and  Financial  Reconstruction  or   any   other authority constituted under the provisions of Sick Industrial  (Special Provisions) Act, 1985.

RESOLVED  THAT  in  view of the fact  that  the  Company  had unabsorbed  depreciation  amounting to Rs. -------  lacs  and carry  forward of losses amounting to Rs. -------- lacs  as  on 31st March, 2013 under the provisions of the Income Tax  Act, 1961   and  there  being  virtual  certainty  based  on   the prevailing  circumstances  that  sufficient  future   taxable income will be available to realise creation of deferred  tax assets,  deferred  tax  assets be created  in  the  Books  of Accounts  of the Company to the extent of Rs.----- lacs  ,  as contemplated   in  the  Accounting  Standard  22,  which   is mandatory.

RESOLVED  FURTHER THAT the accounting  adjustments  emanating from  the creation of deferred tax assets be incorporated  in  the Books of Accounts, as and when necessary.

RESOLVED  FURTHER THAT deferred tax assets amounting  to  Rs.-------  lacs , as created, be adjusted against  the  accumulated  losses  of  the  Company at the end of  the  accounting  year   ending on 31st March, 2014 or as soon as the reduction of the capital is approved by the Board for Industrial and Financial  Reconstruction, whichever is later.

RESOLVED FURTHER THAT the accounting adjustments relating  to reduction  of  capital, as and when approved by  the  Hon'ble BIFR,  and  adjustment  of deferred tax  assets  against  the    accumulated losses of the Company be carried out in the Books of  Accounts simultaneously after receipt of approval to  the reduction  of  capital  from the  Board  for  Industrial  and  Financial  Reconstruction.


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