Board resolutions are legally binding documents that document the results of votes and decisions made by your company’s board of directors during an annual board meeting. The most important situations, such as the appointment of new directors, firing or hiring employees, or selling company shares all require the board resolution to be used as a compliance evidence that your board taken a vote on these crucial issues.
To draft a board of directors resolution, your first step is to identify the type of decision that you are making. Examine the company’s policy to determine if it calls for an ordinary or a special resolution. The company’s documents governing the business may contain information on the number of directors who are required to vote favor of the decision. You could require at least three directors in order to pass a binding resolution.
Whatever type of resolution you need to draft, start with an appropriate title for your document. This will help you locate the resolution document quickly within your records system. Include an individual resolution number in your document-keeping system. This will let you quickly refer to the resolution in the future.
It is essential that all directors accept your resolution once it is written. It is a good idea to use software for board portals for this purpose, as it simplifies the process of writing and electronically signing resolutions streamlined and convenient.
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