Board approval of a guarantee – Board Minutes

Board Minutes to approve a Guarantee

CO.G&I.13

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.

Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.

These Board Minutes to approve a Guarantee are in open format.

Once you have purchased access to the appropriate document folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.

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