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Free Shareholder resolution authorising director to approve own furlough agreement

Directors’ furlough leave arrangements can usually be approved by the board, but you may occasionally need the involvement of your shareholders. The most likely scenario is where your board cannot form a quorum because the director who is to be furloughed is prohibited from voting on their own furlough leave; in that situation, the shareholders will need to authorise the director to do so.

You can use this resolution for this purpose. It will need to be circulated to all shareholders eligible to vote; you will need to ensure it has been approved by your board first. This resolution will be passed as soon as shareholder(s) holding more than 50% of your company’s shares have signed it.

This resolution and accompanying guidance are drafted for a company with model articles of association.


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