Board resolutions are legally-binding documents that document the decisions and votes taken by the directors of your company at the board meeting. Important situations, such as appointing new directors, hiring or firing employees, and selling shares of company all call for the board to adopt a resolution as a form of compliance evidence that your board taken a vote on these crucial issues.
In order to write a board of directors resolution, the first step is to determine what kind of decision you’re making. Review your company’s policy to determine if it requires a special or ordinary resolution. Your company’s governing documents may include a list of directors who are required to vote favor of the decision. You could require at least three directors in order to pass a binding resolution.
Begin by choosing the title that is appropriate for the document. This will help you find the resolution document quickly within your records system. Also, make sure to include the resolution number that is unique to your document-keeping system. This will make it easier to refer back to the https://thedailyboardroom.com/how-board-management-software-pricing-structure-works/ resolution in the future.
After the resolution has been drafted, it is important to ensure that the resolution is signed by the required directors. It is recommended to utilize software for boards for this purpose since it makes the process of writing and electronically signing resolutions simple and easy.