Board Minutes – Consider Director’s Loan and Call General Meeting

What is Board Minutes for a directors loan and when should you use it?

These Board Minutes – Consider Director’s Loan and Call General Meeting are to record minutes of a meeting held by the Board of Directors, where they agree to a loan to a director.

Where a loan is being provided to a director you must ensure that the loan is being provided in compliance with the Summary Approvals Procedure set out in the Companies Act 2014.

The meeting of the Board of Directors will then be adjourned (during which time the General Meeting takes place) and is reconvened to report the passing (or otherwise) of the resolution(s) proposed at the General Meeting.

What else you might need?

If you are looking to provide a loan to a director (or guarantee a loan to a director) then you will also need a declaration of solvency to be signed by all directors of the business.

You may also require a proposed written special resolution and then if ratified an agreed written special resolution

A special resolution is a resolution of the company’s shareholders which requires at least 75% of the votes cast by shareholders in favour of it in order to pass.

There will be a specific clause(s) you will want to include within the special resolution and you can find these here

To find out more about how you can make a loan to a director check out our guide on directors loans