Board of Directors Resolutions are formal documents that define and document the official decisions made by the board of directors. They are, therefore, legally binding for the company. As part of the verification process for a company, they may be requested by shareholders or government officials.
Board resolutions are typically drafted during board meetings. They must be ratified by a majority vote of the board. They may be ad-hoc papers that the board can vote on and approve outside of an official meeting. There are many different kinds of resolutions, including motions to waive notice, minutes, or adjournment.
In a meeting the board will be discussing the proposed resolution in order to determine if any additional details or information are required. Then members of the board will make a motion to approve the resolution and another board member will vote to support it. When the motion is seconded, the board will vote on it according to a procedure as laid out in the company’s bylaws. The votes are recorded by the corporate secretary and are included in the minutes of board meetings. The resolution is then signed by the appropriate officers.
It can be a challenge to draft and record a resolution for a board. However, understanding how to write one can make it easier. By following a standard format, and providing concise and clear information the board is competent to swiftly and efficiently pass resolutions which satisfy the needs of the company. Board Management Software will help to store your board resolutions in a secure online repository. This will ensure that they are effective and legal.
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