Board Minutes approving Deed of Release of Debt

Use these Board Minutes to record a board meeting where the directors approve the company entering into a Deed of Release. The deed releases a borrower in full from a debt owed to the company.

What Approvals Are Needed?

The company must have board approval before entering into a Deed of Release.

In most cases, writing off a company debt does not require shareholder approval. However, the company’s articles of association should be checked in case they impose additional requirements.

Where the lender and borrower are in a parent and subsidiary relationship, consider whether there are conflict issues. A shareholders’ resolution may be required, for example where directors of the parent company are also directors of a wholly-owned subsidiary.

Directors’ Duties

The directors should consider their duties under the Companies Act 2006, including the duty to promote the success of the company, when deciding whether to write off a debt owed to the company.

Accounting And Tax

Writing off a loan may have accounting and tax implications. These Board Minutes do not address those issues. You should consider taking appropriate advice on any accounting and tax consequences.

Board Minutes approving Deed of Release of Debt is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.