Board of Directors Resolutions

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Board of Directors Resolutions are formal documents that define and document the official decisions of the board of directors. They are, therefore, obligatory for the company. They may also be requested by company’s shareholders, or by government officials as part of a vetting process.

Board resolutions are usually created during board meetings and have to be approved by a majority of the board members. They could be ad hoc documents that the board decides to approve and votes on outside of the formal meeting. There are many kinds of resolutions. They include motions to abstain from notification, minutes and adjournment.

At a board session, the board will discuss the proposed resolution and determine the need for additional information or details are required to be added. 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 procedure described in the bylaws for the organization. The votes are recorded by the corporate secretary, and then included in the minutes of board meetings. The resolution is signed by the appropriate officers.

While drafting and recording a board resolution is a daunting task for new board members, a clear understanding of how to write a resolution can make the process much easier. Utilizing a standard format, and providing concise and clear information, the board is capable of quickly and efficiently approve resolutions that serve the needs of the company. Ensure that your board resolutions are legal and effective by storing them in a secure online repository with Board Management Software.