Sample Board Resolution for Closure of Branch Office

A company may decide to close any one or more of its branch offices for different reasons, whether the branch office was fully operational or completely non-operational.

While it is understandable that a branch office may be closed because it has not been in operation for a very long period of time, one may wonder why a company will close a fully functional branch. It may happen for several other reasons:

i) Internal strategic decision;

ii) Merger of business with another company resulting in such a decision;

iii) The branch is not making enough profit or the branch is in loss;

iv) Shifting of branch to another location for better operational purpose.

v) More management bandwidth is getting spent which can be spent somewhere else for better profitability.

A branch office of a company is opened by taking Board's approval and likewise a branch is closed by obtaining Board's permission as well.

Here is a template of the board resolution for closure of the branch office of the company. Modify it as required in your case.

FORMAT

#. Closure of ............ Branch Office of the Company

The managing director informed the board that the ..........branch office of the company, even though it has been fully operational for the last .... years, has not been able to yield profits for the company. The management has taken all efforts to make the branch more profitable, but it has not been successful. The main reason behind this is the high competition from the local businesses for the similar offerings. Therefore, it was suggested to the board of directors for closure of the said branch office.

The board deliberated on the matter. Upon motion duly passed and seconded, it was:

“RESOLVED THAT the consent of the Board of Directors be and is hereby accorded for closure of ..........branch office of the company situated at ......................(address)...............

RESOLVED FURTHER THAT (Name of the Officer), (Designation) and (Name of the Officer), (Designation) be and is hereby jointly authorised to sign and execute all such documents and instruments as may be required in this connection and to do all such acts, deeds and things as may be necessary for completing the closure process of the said branch office.

RESOLVED FURTHER THAT a certified true copy of this resolution be forwarded to all such statutory authorities under the signature of the Managing Director or the Company Secretary.”