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

Related Article :

Different between director and shareholder

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