Board resolutions are documents that document the crucial decisions made by board members. They also authorize individuals or organizations to implement the decision decided. They are an essential element of a board’s power and can have legal consequences. However, drafting effective resolutions can be a challenge for directors who are unfamiliar with the process.
It is advisable to use a template in order to familiarize yourself with the style and language of a resolution. The template is available in your board portal. This will make the process of drafting resolutions a lot easier for all board members and ensure that the document follows the format that is required.
A good board resolution starts with «Whereas,» which explains the reasoning and facts behind the decision. It concludes with «resolved,» which identifies the specific action to be taken. The resolution should then include a list of all board members who voted for or against it, and a space for the chairperson (or authorized signatory) to sign their name.
It’s also important to note that only if all directors are present at a board of directors meeting can a resolution be adopted. This is a challenge if you have directors who reside in different cities or countries which is why using a board resolution template is extremely beneficial. It lets the board create and approve resolutions quickly and accurately without waiting for everyone to be in the same room for an official board meeting.
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