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A Board Resolution For Taking Loan From Shareholder is commonly used when a company needs additional funding and opts to obtain it from existing shareholders rather than external lenders. This document, governed by U.S. corporate law, serves as official evidence that the board has approved the loan transaction and its terms. It's particularly important for maintaining proper corporate governance, ensuring transparency, and protecting both the company and the lending shareholder. The resolution typically includes loan amount, interest rate, repayment terms, and specific authorizations for executing the loan documents.
