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. They could also be requested by the company’s shareholders or the government authorities as part of a verification process.
Board resolutions are usually drafted at board meetings and must be approved by a majority vote of board members. They could be ad hoc documents that the board votes on and approves outside of a formal meeting. There are many kinds of resolutions. These include motions to abstain from notification, minutes and adjournment.
During a board meeting, the board will discuss the proposed resolution and decide the need for additional information or details are required to be added. A member of the board will then move to adopt the proposed resolution and a seconder support it. If the motion is approved the board will vote on the resolution using a procedure as laid out in the company’s bylaws. The votes are recorded in the minutes of the board meetings by the corporate secretary. The final step is for the appropriate officers to accept the resolution.
While drafting and recording a board resolution can be intimidating for new board members, having a complete understanding of how to write a resolution can make the https://boardroomonline.net/how-to-reduce-complexity-and-increase-productivity-for-board-members/ process much more simple. By using a standard format and providing clear and concise information the board is competent to swiftly and efficiently pass resolutions which satisfy the needs of the business. Be sure that your resolutions are legal and effective by saving them in a secure online repository with Board Management Software.
