Board resolutions are legally binding documents that document the results of votes and decisions made by your company’s board of Directors during the board meeting. Board resolutions are required for crucial situations, such as appointing directors, removing employees, or selling shares of the company. They serve as evidence that the board voted on the most important issues.
First, you need to determine the kind of decision being taken. Examine the company’s policy to determine if it requires an ordinary or a special resolution. The documents that govern your company may also state how many directors are required to vote favor of the decision. For instance, you may require a quorum of at three directors to https://thedailyboardroom.com/how-board-management-software-pricing-structure-works/ approve an agreement that is legally binding decisions.
No matter what kind of resolution you’ll need begin by deciding on a suitable title for your document. This will help you quickly identify the document within your records system. Also, make sure to include the resolution number that is unique to your document-keeping system. This will let you quickly refer to the resolution in the future.
It is crucial that all directors approve your resolution after it’s been written. This is why it’s a great idea for you to use board portal software, which allows you to write resolutions and e-signing them streamlined and easy.