Board of Directors Resolutions are formal documents that outline and record the official decisions made by a board of directors. As such, they are binding on the organization. They can be requested by company’s shareholders or the government authorities as part of a vetting process.
Board resolutions are usually created at board meetings. They need to be approved by a majority vote of the board. They can be ad-hoc documents that the board can vote on and approve outside of an official meeting. There are numerous kinds of resolutions. These include motions to abstain from notification, minutes and adjournment.
In a board meeting the board will first go over the proposed resolution and determine if additional information or details are required to be added. Then, a member of the board will vote to adopt the resolution and another board member will vote to support it. Once the motion has been seconded the board will vote on the resolution using a procedure that is outlined in the bylaws of the organization. The votes are recorded by the corporate secretary, and then included in the board’s minutes. The final step is for the appropriate officers to accept the resolution.
It can be a challenge to draft and record a board resolution. But, knowing how to write one makes the process easier. By using the same format, and providing concise and clear information the board can be able to quickly and efficiently approve resolutions that serve the needs of the organization. Make sure that your resolutions are legal and effective by saving them in a secure online repository with Board Management Software.
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