Document background
A Board Resolution For Loan From Shareholder is a crucial corporate document used in Pakistan when a company needs to formally approve and document borrowing funds from its shareholders. This type of resolution is required under Pakistan's Companies Act 2017 and must comply with SECP regulations, particularly when dealing with related party transactions. The document is typically prepared when a company requires additional funding and a shareholder is willing to provide it as a loan rather than equity investment. It includes essential details such as loan amount, interest rate, repayment terms, and any security arrangements, while also addressing corporate governance requirements and regulatory compliance. The resolution serves multiple purposes: it authorizes the transaction, provides protection for both the company and the lending shareholder, and creates a clear record for audit and regulatory purposes.
