Shareholders Resolution for Paying for Loss of Office

The resolution outlines the terms and conditions under which the payment is made, ensuring transparency and compliance with corporate governance standards. It often includes details regarding the amount payable and any specific contractual obligations the departing individual must fulfill to receive the payment.

The shareholders' resolution serves to protect both the departing officer and the company by documenting mutual agreement on the financial arrangements. By obtaining shareholders' consent, it helps avoid any potential disputes or conflicts that might arise regarding the payment after the individual has stepped down.