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Resolution to Purchase Motor Vehicle

Sample Corporate Resolution

Certain prerequisites may be offered once a director is appointed in a company. These may include, but are not limited to, salary, allowances, and financing a car.

In order to finance a car in the name of the director, a meeting and vote must be passed by the shareholders to create a corporate resolution to purchase a motor vehicle. This corporate resolution includes details covering a description of the vehicle, its purchase price, and the name of the seller. Approval of the resolution allows the company to purchase the car in the name of and for use by the appointed director.

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Sample Corporate Resolution to Purchase Motor Vehicle
(Text Only Version)

COMPANY NAME

Resolution to Purchase Motor Vehicle

WHEREAS, a motor vehicle is necessary for the operation of the business, be it:

RESOLVED, to purchase the motor vehicle described as VEHICLE DESCRIPTION, License Number LICENSE NUMBER, V.I.N. VIN NUMBER from SELLER NAME for the purchase price of PRICE ($PRICE NUMERICAL).

The undersigned hereby certifies that he/she is the duly elected and qualified Secretary and the custodian of the books and records and seal of COMPANY NAME,a corporation duly formed pursuant to the laws of the state of YOUR STATE and that the foregoing is a true record of a resolution duly adopted at a meeting of the DIRECTORS/MEMBERS and that said meeting was held in accordance with state law and the Bylaws of the above-named Corporation on MEETING DATE,and that said resolution is now in full force and effect without modification or rescission.

IN WITNESS WHEREOF, I have executed my name as Secretary and have hereunto affixed the corporate seal of the above-named Corporation this DAY OF THE WEEK, CURRENT MONTH of CURRENT YEAR.

SECRETARY NAME, Secretary

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What kind of information do I need to create a resolution to purchase motor vehicle?

This corporate resolution to purchase vehicle includes details covering a description of the vehicle, its purchase price, and the name of the seller. When you create a resolution to purchase a motor vehicle, you need to include the following information:

The legal name of the corporation
Vehicle description, including license number and V.I.N. number
Seller name
Purchase price
The state where the business is formed
Information about the directors/members
The date on which the agreement to purchase a vehicle is made
The current day, month, and year when the agreement is signed

This resolution must document the actions that are authorized to be taken by the business and should be stored along with your corporate records.

Frequently asked questions

+ Who must grant power of attorney for a business?

Power of attorney is a legal status. It may be granted to one person, known as the agent or attorney-in-fact, who has the power to act for another person known as the principal. The principal or the agent may sign a POA document to make decisions regarding the principal's property and finances. This document must be signed with a notary present.

+ Can a corporation grant power of attorney?

Yes, a corporation may grant power of attorney. They may grant another professional or business, such as a law firm, the authority to execute deeds or additional documents on behalf of the corporation.

+ What is a corporate resolution form to buy a car?

A corporate resolution form is legal documentation created by shareholders to document the approval of a purchase of a vehicle for the appointed director of the corporation. A formal meeting of shareholders is required to approve this purchase and must be documented in the form. The form includes legal guidelines and is completed with the following information:

+ Why do I need a resolution form to purchase a vehicle?

A corporate resolution documents business decisions or major monetary transactions as a way of keeping formal records. Maintaining transparency and accountability with such formal legal documentation avoids disputes or questions within the company about such purchases and transactions. It also provides proof that such a decision was not made without formal approval from members and directors.

If a company is audited, this documentation provides proof that the officials of the corporation are following their fiduciary duties to ensure that all are aware of the transactions made. Resolution forms must be kept on file with other important documentation for the company.

+ Can I use a personal car for business purposes without a resolution?

Although a resolution is not required for personal car use for business purposes, it is recommended. Personal car use for business purposes can have beneficial tax implications for you as a business owner, proper documentation and record keeping of this use is important when asking for IRS deductions.

If a personal car is used for business in a corporation with directors and shareholders, it is important to disclose the information and get approval with all decision makers. A resolution may be needed in this case to document the approval and subsequent tax deduction or mile reimbursement requests.

+ Do I need a lawyer to create a corporate resolution to purchase a vehicle?

Although a lawyer is not required to create a corporate resolution to purchase a vehicle, it is advisable to consult with one to make sure you have covered all the necessary requirements when creating a resolution.

A lawyer will be better versed in the jurisdiction, state requirements, and the type of business that this type of resolution involves. They can provide clarity with the legal jargon of the documentation. They can give advice based on those specifics and help in drafting a thorough and legally sound resolution that is applicable to the laws and regulations.

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