Document background
A Board Resolution For Purchase of Equipment is a crucial corporate governance document used when a company needs to formally approve and document the acquisition of significant equipment or machinery. This resolution is particularly important in New Zealand's corporate environment, where the Companies Act 1993 requires clear documentation of board decisions involving substantial asset purchases. The document is typically required when the purchase value exceeds certain thresholds specified in the company's constitution or when the acquisition is material to the company's operations. It includes essential details such as the equipment specifications, purchase price, authorized signatories, and any specific conditions attached to the approval. The resolution serves multiple purposes: it demonstrates proper corporate governance, provides authorization for the transaction, and creates an audit trail for regulatory compliance. It's particularly relevant for companies operating in industries where equipment purchases represent significant capital expenditure.
