Board of Directors Resolutions are formal documents that describe and record the official decisions made by a board of directors. They are therefore binding on the organization. As part of a company’s verification process, they can be requested by its shareholders or government officials.
Board resolutions are usually drafted at board meetings and must be approved by a majority vote of board members. They may also be ad-hoc files that are approved by a vote and ratified by the board prior to a meeting. There are several different types of resolutions, including motions to waive notice, minutes, and adjournment.
In a board meeting the board will first go over the proposed resolution and determine whether any additional information or specifics should be added. Then one member of the board will propose to adopt the resolution and a second member will then support it. When the motion is seconded and the board votes on it according to a procedure stipulated in the bylaws of the company. The votes are recorded by the corporate secretary and included in the board meeting minutes. The resolution is signed by the appropriate officers.
It can be intimidating to draft and record a resolution of the board. But, knowing how to write one can make it easier. By following the same format, and providing clear and concise information the board can be able to quickly and efficiently adopt resolutions that satisfy the needs of the business. Board Management Software will help to store your board resolutions in a safe, online repository. This will ensure that they are efficient and legally valid.