Board Resolution Format for Writing Off Bad Debts

BOARD RESOLUTION: AUTHORIZATION FOR WRITE-OFF OF UNCOLLECTIBLE ACCOUNTS RECEIVABLE

Document ID: RES-BAD-DEBT-[YYYY]-[001] Effective Date: [Date] Version: 1.0 Governing Jurisdiction: [State/Province], [Country]

STATUTORY & LEGAL COMPLIANCE NOTICE

This document constitutes a formal corporate record. It is drafted to satisfy standard accounting principles (GAAP/IFRS) and corporate governance requirements. This instrument assumes the existence of valid internal controls. Counsel must verify that the write-off complies with local tax regulations regarding "worthless debt" deductions and that the signatory possesses the requisite corporate authority pursuant to the Company’s Bylaws and/or Articles of Incorporation.

1. RECITALS

WHEREAS, [Company Full Legal Name] (the "Company") maintains accounts receivable related to its ordinary course of business;

WHEREAS, the Board of Directors (the "Board") has reviewed the schedule of accounts receivable identified as uncollectible, as summarized in Exhibit A (the "Bad Debts");

WHEREAS, the Company has exhausted all commercially reasonable efforts to collect the outstanding balances, including but not limited to formal demands, payment plans, and/or third-party collection services;

NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes the write-off of the Bad Debts in the total amount of $[Amount in USD] in accordance with the Company’s financial policies and applicable accounting standards.

2. OPERATIVE CLAUSES

SECTION 1: AUTHORIZATION OF WRITE-OFF The Chief Financial Officer (CFO) and/or the Controller of the Company are hereby authorized and directed to remove the Bad Debts listed in Exhibit A from the Company’s books and records, effective as of [Date]. This action shall be recorded in the Company's general ledger in accordance with the accrual basis of accounting and in compliance with the Company’s established revenue recognition policy.

SECTION 2: FINALITY OF ACTION The Board acknowledges that the write-off of these accounts constitutes a formal determination that such debts are uncollectible. The Company shall record the corresponding Bad Debt Expense in the current fiscal period. This action does not constitute a waiver of any legal rights the Company may have to pursue these debts in the future should the financial position of the debtors materially change.

SECTION 3: TAX COMPLIANCE The Finance Department shall ensure that the documentation justifying these write-offs is maintained for the statutory period required by the [Insert Tax Authority, e.g., Internal Revenue Service] to substantiate the bad debt deduction for income tax purposes.

SECTION 4: RATIFICATION All actions heretofore taken by the officers and agents of the Company in connection with the collection efforts related to the Bad Debts are hereby ratified, confirmed, and approved in all respects.

SECTION 5: GOVERNING LAW This Resolution and all actions taken pursuant hereto shall be governed by and construed in accordance with the internal laws of the jurisdiction of [State/Province], without regard to its conflict of laws principles.

3. EXECUTION & FORMAL SIGNATURE BLOCKS

FOR [COMPANY FULL LEGAL NAME]:

BY ORDER OF THE BOARD OF DIRECTORS

Signature: _____________________________________ Printed Name: [Name of Board Chair/Corporate Secretary] Title: [Title / Role] Company: [Company Full Legal Name] Date: [Date]

ATTESTED BY:

Signature: _____________________________________ Printed Name: [Name of Secretary/CFO] Title: [Title / Role] Date: [Date]

4. STEP-BY-STEP EXECUTION & FILING GUIDE

1. Preparation: Fill all bracketed fields in the document using your word processor. Ensure the total dollar amount matches the aggregate sum listed in the internal ledger (Exhibit A).
2. Board Verification: Ensure that a quorum of the Board of Directors was present at the meeting where this resolution was adopted, or that a Unanimous Written Consent (UWC) was signed in lieu of a meeting.
3. Digital Execution: Upload the finalized document to a platform such as DocuSign or Adobe Sign. Use the "Signer Order" feature to route the document to the Board Chair first, followed by the Corporate Secretary.
4. Exhibit Attachment: Attach the detailed list of uncollectible accounts (showing Customer Name, Invoice Number, Date, and Amount) as "Exhibit A" to the final executed PDF.
5. Record Retention:
   • File the original signed document in the Corporate Minute Book.
   • Provide a certified copy to the Accounting/Finance Department for entry into the ERP/Accounting system.
   • Maintain digital copies in the secure "Legal/Corporate Governance" folder for a period of no less than seven (7) years, or as mandated by the jurisdiction's statute of limitations on tax audits.