Board of Directors Resolutions are formal documents that describe and record the official decisions taken by a board of directors. They are, therefore, binding on the organization. As part of the company’s verification process they may be requested by its shareholders or by government officials.
Board resolutions are usually adopted at board meetings. They require 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 numerous kinds of resolutions. These include motions to waive notification, minutes, and adjournment.
In a meeting the board will go over the proposed resolution in order to determine if any additional information or details are needed. Then, a member of the board will move to adopt the resolution and a second member will then support it. The board will then vote on the motion using the procedure laid out in the bylaws of the company. The votes are recorded by the corporate secretary and included in the board meeting minutes. The resolution is then signed by the appropriate officers.
While drafting and recording a board resolution can be intimidating for new board members, having a clear understanding of how to write a resolution can make the process much easier. By adhering to a common format and presenting clear, concise information the board can swiftly and efficiently pass resolutions that serve the organization’s needs. Ensure that your board resolutions are legal and efficient by keeping them in a secure online repository with Board Management Software.
