Board resolutions are legally binding documents that reflect the results of votes and the decisions made by your company’s board of Directors at a board meeting. Board resolutions are necessary in crucial situations, such as appointing directors, firing employees, or selling shares of the company. They are a proof that the board voted on the crucial issues.
First, you must decide what type of decision is being taken. Examine the company’s policy to determine if it calls for an ordinary or a special resolution. In your company’s governing document it could be stated how many directors are required to decide on the resolution. You may need at minimum three directors in order to approve a binding resolution.
Begin by choosing a title that is appropriate for the document. This will help you find the resolution document quickly in your records system. Be sure to include the resolution number that is unique to your document-keeping system. This will allow you to easily refer to the resolution number in the future.
After the resolution has been written, it is crucial to ensure that the resolution is signed by the required directors. This is why it’s a good idea to utilize board portal software, which simplifies the process of writing resolutions and e-signing them quick and simple.
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