Board Minutes to approve a Guarantee
These Board Minutes to approve a Guarantee can be used to record a board meeting where a company’s board agrees that the company will guarantee the indebtedness of a named third party. These board minutes have been updated for best practice including the addition of wording to guarantee the financial obligations of a parent company’s subsidiary.
Before a company enters into a guarantee, its articles of association should be checked to establish whether there are any restrictions on its ability to provide a guarantee.
Board minutes should also, as a matter of good practice, state the corporate benefit to the company of providing the guarantee. This may be relatively simple if the guarantee is for a solvent subsidiary, but if there is any doubt regarding this, it may be necessary to seek shareholder approval for the terms and giving of the guarantee. Our Written Resolution to approve a Guarantee may be used for this purpose.
These Board Minutes to approve a Guarantee are in open format.
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