Provide Corporate Guarantee for working capital loan from any bank - BR

Board Resolution to provide corporate guarantee for and on behalf of a Subsidiary Company seeking working capital loan from any bank under Section 186 of Companies Act, 2013

“RESOLVED THAT in consideration of the _____________ (____) having agreed to advance working capital facilities with an overall credit limit of Rs.____________/- (Rupees ___________) (here in after referred to as “the credit facilities”) in the manner and on the terms and conditions contained in the sanction letter no_______ dated __________ to M/s ______Pvt. Ltd., a company incorporated under companies Act, 2013 having registered office at _________________ (here in after referred to as the borrower”), one of the subsidiaries of M/s ________ Ltd. (the Company) and the company do execute a corporate guarantee guaranteeing the repayment of the credit facilities along with interest in favour of ___ for and on behalf of M/s _______ Pvt. Ltd., the subsidiary company.

RESOLVED FURTHER THAT the Board of Directors of the company consider and declare the following:

1. That the terms and conditions for providing corporate guarantee as annexed to the sanction letter No_______ dated _________ communicated by the Bank to M/s _______ Pvt. Ltd. be and is hereby accepted as these are not prejudice to the interest of the company.

2. The Board considered that the corporate guarantee is for an amount of Rs. ____ being approved for tenure of __ years subject to renewal by the Bank.

3. The Board confirm that the guarantee provided is not prejudicial to the interest of the company.

4. The Board further considered receiving counter guarantee from M/s ______ Pvt. Ltd. in favour of the company M/s ________ Ltd. to protect the interest of the company.

RESOLVED FURTHER THAT the draft of the Guarantee Agreement received from _____ along with its sanction letter no _____ dated ______ (Copies whereof duly authenticated by the chairman of the Board have been circulated to the members of the Board) be and is hereby approved and the Mr. _____, Managing Director of the company be and is hereby authorised to accept on behalf of the company with such modification therein as may be acceptable to ______.

RESOLVED FURTHER THAT the common seal of the company be affixed to the guarantee agreement (with such modifications as may be agreed) in the presence of Mr. ____, Managing Director who shall sign the same in token thereof, and Mr. ____, Executive Director who shall counter sign the same in token thereof.

RESOLVED FURTHER THAT an undertaking to that effect that the company is willing to provide its corporate guarantee and execution of the necessary guarantee agreement for the above said purposes be furnished to _____ by Mr. _____, Managing Director and/or Mr. _____, Executive Director for and on behalf of the company for providing corporate guarantee.

RESOLVED FURTHER THAT, a copy of the foregoing resolution duly certified as a true copy be submitted to the Bank under signature of any one of the director of the company and the Bank do act upon the same.”