Importance of Board Resolutions in Private Limited Companies

In a Private Limited Company, every major decision must be approved through a board resolution. These are formal documents recording decisions taken by the Board of Directors.

Why Are Board Resolutions Important?

1. Legal Compliance – Required under the Companies Act, 2013.
2. Transparency – Provides a written record of decisions.
3. Authority & Accountability – Ensures decisions are backed by directors.
4. ROC Filings – Certain resolutions (e.g., appointment of directors, change in share capital) must be filed with ROC.
5. Investor Confidence – Shows corporate governance and professionalism.

👉 Proper board resolutions help businesses avoid disputes and maintain compliance.