Board resolutions are legally binding documents that record the decisions and votes taken by the directors of your company at an annual board meeting. Major situations, like appointing new directors, firing or hiring employees, and selling shares of company all require a board resolution as compliance evidence to show that your board voted on these important matters.
To write a board of directors resolution, your first step is to determine what kind of decision you’re making. Review your company’s policy to determine whether it needs an ordinary or special resolution. In your company’s governing document, it may be stated how many directors must approve the decision. It is possible that you need at least three directors in order to pass a legally binding resolution.
No matter what kind of resolution you need to draft begin by creating a suitable title for your document. This will let you quickly identify the document within your records system. Include the resolution’s unique number in your document-keeping system. This will allow you to reference the resolution in future.
It is crucial that the directors of your company accept your resolution once it’s been written. This is why it’s a good idea to utilize board portal software, which simplifies the process of writing resolutions and e-signing them streamlined and simple.
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