Board resolutions are legally binding documents which record the results of the votes and decisions taken by the company’s board of directors during an annual board meeting. Board resolutions are required in major situations such as the appointment of directors, firing employees or selling company shares. They serve as proof that the board voted on the most important issues.
First, you must decide the kind of decision being taken. Go through your company’s policies to determine if it calls for an ordinary or a special resolution. In the governing document of your company it could be stated the number of directors required to be present to vote on the decision. It is possible that you need at least three directors to approve a binding resolution.
No matter what kind of resolution you’ll need to draft begin by deciding on a suitable title for your document. This will help you quickly identify the document in your records system. Also, make sure you include a resolution number that’s unique to your document-keeping system. This will make it easy to reference the resolution in future.
It is crucial that all directors approve your resolution after it’s been drafted. This is why it’s a good idea to utilize board portal software, which simplifies the process of writing resolutions as well as e-signing them simple and convenient.
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