Board of Directors Resolutions are formal documents that describe and record the official decisions taken by a board of directors. They are therefore legally binding for the company. They can also be requested by company’s shareholders or government authorities as part of a vetting process.
Board resolutions are usually drafted at board meetings, and must be approved by a majority vote of board members. They can also https://linkedforbiz.com/revolutionizing-mergers-and-acquisitions-with-virtual-due-diligence-tools/ be ad-hoc files which are voted on and ratified by the board outside of a meeting. There are a variety of resolutions. These include motions to waive notification, minutes and adjournment.
At a meeting the board will debate the proposed resolution to determine if any additional information or details are needed. Then the member of the board will move to adopt the resolution, and a second member will then support it. If the motion is approved and the board votes on the resolution according to a process 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 sign the resolution.
While writing and recording a resolution for the board can be a challenge for novice board members, having a well-defined understanding of how to draft a resolution makes the process much easier. By following a standard format and providing clear concise information the board can swiftly and efficiently approve resolutions that meet the company’s needs. Ensure that your board resolutions are legal and effective by saving them in a secure online repository Board Management Software.
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