Board Minutes to approve a Guarantee
These Board Minutes to approve a Guarantee can be used to record a board meeting at which a company’s board agrees that the company will guarantee the indebtedness of a named third party. These minutes include updated best practice wording, including 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 restrictions on its ability to provide a guarantee.
What do Board Minutes to approve a Guarantee cover?
As a matter of good practice, the minutes should also record the corporate benefit to the company of providing the guarantee.
This may be relatively straightforward if the guarantee is for a solvent subsidiary. If there is any doubt regarding this, it may be necessary to seek shareholder approval for the terms of, and the giving of, the guarantee.
Choose the right version
If shareholder approval is required, use:
Board Minutes to approve a Guarantee is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.