Board of Directors Resolutions
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Board of Directors Resolutions are formal documents that outline and record the official decisions of the board of directors. They are, therefore, obligatory for the company. As part of the verification process of a company, they may be requested by its shareholders or government officials.
Board resolutions are usually adopted at board meetings. They must be ratified by a majority vote of the board. They may also be ad-hoc files which are voted on and approved by the board outside of a meeting. There are several different types of resolutions, such as motions to waive notice, minutes, or adjournment.
During a meeting the board will go over the proposed resolution to determine if additional information or details are needed. A member of the board will move to adopt the proposed resolution and a seconder will support it. If the motion is approved the board will vote on the resolution according to a process stipulated in the bylaws of the company. The votes are recorded by the corporate secretary and are included in the board’s minutes. The final step is for the appropriate officers to accept the resolution.
It can be a daunting task to draft and record a resolution for a board. But, knowing how to write one can make the process much easier. By adhering to a common format and providing clear, concise information the board can swiftly and efficiently adopt resolutions that are in line with the organization’s needs. Board Management Software will help you save your board resolutions in a safe, online repository. This will ensure that they are effective and legally valid.