Board of Directors Resolutions

Board of Directors Resolutions are formal documents that outline and record the official decisions of the board of directors. They are therefore legally binding for the company. As part of the verification process for a company, they could be requested by shareholders or government officials.

Board resolutions are usually drafted during board meetings and must be approved by a majority vote of board members. They can be ad-hoc documents that the board votes on and approves outside of an official meeting. There are many different types of resolutions. These include motions to waive notification, minutes, and adjournment.

In a board meeting the board will begin by discussing the proposed resolution and decide the need for additional information or details need to be added. Then, a member of the board will vote to adopt the resolution, and another member will second it. If the motion is approved and the board Why Paperless Board Meetings Are the Future votes on the resolution according to a process as laid out in the company’s bylaws. The votes are recorded by the corporate secretary and included in the board’s minutes. The resolution is signed by the appropriate officers.

While writing and recording a resolution for the board is a daunting task for new board members, a well-defined understanding of how to write a resolution will make the process much simpler. With the same format, and providing clear and concise information the board is capable of quickly and efficiently pass resolutions that fulfill the requirements of the business. Board Management Software will help keep your resolutions in a safe, online repository. This will ensure that they are effective and legal.