The resolution serves as a legal record of the board’s decision-making process and is often required for the execution of the sale and for future reference in case of disputes or for auditing purposes. It is a demonstration of the board’s fiduciary duty to act in the best interest of the company and its shareholders, ensuring that the sale is conducted transparently, fairly, and with due diligence.
Board Resolutions where a Company is selling its Property
KShs 3,000
In the context of corporate governance, a board resolution for the sale of company property is a formal document that records the decision of the board of directors to authorize the sale of a specific asset. This resolution is typically required when the property in question is a significant asset, and the decision to sell is a strategic move that could impact the company’s operations or financial standing. The resolution will detail the reasons for the sale, the property being sold, and the terms of the sale, including the price and any conditions that must be met. It will also list any directors who abstained from voting due to potential conflicts of interest.
