Document background
A Board Resolution For Credit Facility is a crucial corporate governance document required when a company in South Africa seeks to obtain credit facilities from a financial institution. This document is mandated by the Companies Act 71 of 2008 and must comply with both corporate governance requirements and banking regulations. It is typically used when a company needs to secure new financing, renew existing facilities, or modify current credit arrangements. The resolution must demonstrate that the board has properly considered the facility terms, confirms the company's authority to enter into the arrangement, and designates specific individuals to execute the necessary documentation. It serves as evidence to third parties, particularly banks, that the company has followed proper internal procedures and has the necessary authority to enter into the credit facility.
