Board of Directors Resolutions are formal documents that define and document the official decisions taken by a board of directors. As such, they are legally binding on the company. As part of a company’s verification process, they can be requested by shareholders or government officials.
Board resolutions are usually created at board meetings. They need to be approved by a majority vote of the board. They may also be ad-hoc files that are voted upon and ratified by the board prior to a meeting. There are a variety of resolutions. These include motions to waive notification, minutes, and adjournment.
At a meeting the board will go over the proposed resolution in order to determine if any additional details or information are required. Then, a member of the board will propose to adopt the resolution, and another member will second it. The board will then vote on the motion according to the procedure described in the bylaws of the organization. The votes are recorded by the corporate secretary and are included in the minutes of board meetings. The resolution is signed by the appropriate officers.
It can be a daunting task to write and record a board resolution. But, knowing how to draft one makes the process easier. By adhering to a standard format and providing clear, concise information, the board can quickly and efficiently pass resolutions that are in line with the organization’s needs. Board Management Software will help keep your resolutions in a secure, online repository. This will ensure that they’re effective and legal.
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