How director making decision
Director is the one who engaged to run the company, how should director make decision in comply with company act especially if there is more than 1 director on board ?
Type of decision :
- change bank signing mandate
- change registered address
- getting loan from Bank
- change company objective
- change supplier
How to make decision ?
“Resolution” is refer to minutes signed by director . After signed the resolution, means that the relevant transaction is approved .
What if company have more than 1 director ? How many signature required ?
You will need to check company constitution to confirm the quorum number.
” Quorum refer to minimum number of consent required to approve transaction ”
I am the only director, must i prepare resolution ?
Yes, according to company act requirement .
When director required to get consent from shareholder ?
Shareholder is the one who invest and engaged director to run the Company.
According to Companies act, certain major changes is required shareholder’s consent :
- Change in company name
- Change in company constitution
- removal of director
- change in auditor
All transaction required shareholder consent will need to prepare and pass in Extraordinary General Meeting (EGM) resolution.
Why resolution is important ?
Is the proof of consent from all director and some transaction required signed resolution to Lodged in with ACRA
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