When two or more companies/firms/individual agree upon a settlement for a law suit initiated by one or more them, and the parties want to enter into a consent term to enable the judge to disposed off the matter and get decree on it. The person representing each party who will sign the Consent Terms on behalf a company, required to be authorised by a board resolution to sign the consent terms.
The format of the board resolution can be something like below:
“RESOLVED THAT the Company do negotiate, finalise and execute consent terms with one or more of the defendants i.e. M/s. XYZ Limited, M/s. OO & Associates and Mr. X, in the ___________ suit no. ___ of ____ before the Hon’ble High Court of ___________.
RESOLVED FURTHER THAT a copy of the resolution certified to be true by Mr. L, Director be given as and when necessary.”