Document background
A Board Resolution For Loan To Director is a crucial corporate governance document used in Swiss companies when the board approves a loan to a director. This document type is essential for compliance with Swiss corporate law, particularly the Swiss Code of Obligations, and demonstrates proper corporate governance in related party transactions. It is typically used when a director requires financing and the company is willing to provide it, subject to proper authorization and documentation. The resolution must include specific elements such as loan terms, conflict of interest management, business rationale, and confirmation that the transaction serves the company's interests. The document should be maintained in both company records and board minutes, and may require additional shareholder approval depending on the loan amount and company articles. It forms part of the company's corporate governance documentation and may be subject to scrutiny by auditors, regulators, and shareholders.
