Document background
A Board Resolution For Sale Of Shares Of Subsidiary Company is a crucial corporate document required under Indian law when a company intends to divest its shareholding in a subsidiary. This document is mandatory under the Companies Act, 2013, and must be passed in a valid board meeting with proper quorum. The resolution typically includes details of the proposed sale, including the number of shares, price per share, total consideration, buyer details, and terms of the transaction. It's particularly important as it demonstrates proper corporate governance, board oversight, and compliance with statutory requirements. The resolution should be drafted carefully to ensure it covers all necessary authorizations and compliances, including those under SEBI regulations (for listed companies), FEMA (for foreign buyers), and Competition Commission requirements where applicable.
