A board resolution for creation of charge records the Board's consent to create a charge over company assets to secure a facility and authorises filing of Form CHG-1.
When a company secures a loan against its assets, it creates a charge in favour of the lender. The board resolution records the charge holder, the assets charged and the amount secured, and authorises execution of the security documents and filing of Form CHG-1 with the ROC within 30 days.
When is this resolution needed?
Use this alongside a secured loan or facility where company assets are offered as security.
Who can pass it?
The Board accords consent and authorises the CHG-1 filing.
This is a free template for general convenience and not a substitute for professional advice. The resolution must be passed at a duly convened meeting, recorded in the minutes and certified by an authorised signatory. Some matters also require members' approval or specific e-form filings.