Board of Directors Resolutions are formal documents that provide a detailed outline of the official decisions taken by the board of directors. As such, they are binding on the organization. As part of the verification process of a company, they can be requested by shareholders or by government officials.
Board resolutions are typically drafted at board meetings. They require a majority vote of the board. They may also be ad-hoc files that are approved by a vote and approved by the board in lieu of the meeting. There are various kinds of resolutions, such as motions to waive notice, minutes, or adjournment.
In a board meeting the board will go over the proposed resolution to determine if additional details or information is required. Then the member of the board will move to adopt the resolution and another member will second the motion. The board will then vote on the motion using the method described in the bylaws of the organisation. The votes are recorded in the minutes of the board meetings by the corporate secretary. The resolution is then signed by the appropriate officers.
While writing and recording a board resolution is a daunting task for new board members, having a clear understanding of how to write a resolution can make the process much more simple. By using a standard format, and providing concise and clear information the board can be competent to swiftly and efficiently pass resolutions that serve the needs of the business. Board Management Software will help keep your resolutions in a secure, online repository. This will ensure that they’re efficient and legal.
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