Keyman insurance, board resolution and undertaking

PART 1 — CERTIFIED TRUE COPY OF THE RESOLUTION
passed at the meeting of the Board of Directors of [Name of the company] Private Limited
held on [Date of the Board meeting] at [Time of the Board meeting] at [Venue of the Board meeting]

“RESOLVED THAT the Board, having considered the note placed before it, records that [name of the key person], [Key person's designation] of the Company, is a person whose services are of material importance to the business of the Company by reason of [his technical knowledge of the [process]; his customer and supplier relationships accounting for [percentage] per cent of the Company’s turnover; his personal guarantee of the Company’s borrowings; his role as the Company’s [designation]], and that the death or disability of the said person during the currency of the Company’s present business plan would cause the Company a financial loss estimated at Rs [amount], computed as set out in the note.

RESOLVED FURTHER THAT the Company do take out a keyman insurance policy on the life of the said [name of the key person], the Company being the proposer, the owner and the sole beneficiary of the policy, for a sum assured of Rs [Keyman policy sum assured (Rs)] (Rupees [Keyman policy sum assured in words] only), for a term of [Keyman policy term (years)] years, being a pure term assurance policy without any maturity or survival benefit, with [name of the insurer], at an annual premium not exceeding Rs [Maximum annual premium (Rs)], and that the premium be paid out of the funds of the Company and charged to the profit and loss account as business expenditure.