Board Resolution for Borrowing / Availing a Loan — Format (Section 179)
A ready board resolution to borrow funds or avail a loan under Section 179(3)(d) of the Companies Act, 2013, authorising the signatories to execute the loan and security documents. Download the editable Word file or the fillable PDF.
Sample resolution
Board resolution or special resolution?
The power to borrow is exercised by the Board through a resolution under Section 179(3)(d). A private company can borrow on a board resolution. A public company must also observe the limit in Section 180(1)(c) — borrowings beyond the paid-up capital, free reserves and securities premium require a special resolution of the members.
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FAQs
Under which section does the Board approve borrowing?
Under Section 179(3)(d) of the Companies Act, 2013, by a resolution passed at a board meeting.
Does a private company need a special resolution to borrow?
No. A private company can borrow on a board resolution; the Section 180(1)(c) special-resolution limit applies to public companies.
Who signs the loan documents?
The persons authorised in the resolution execute the loan agreement, hypothecation and guarantee documents.
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Format current as of July 2026. General information only, not legal advice.