Board of Directors Resolutions are formal documents that provide a detailed outline of the official decisions taken by a board of directors. As such, they are legally binding on the company. They could also be requested by company’s shareholders or government authorities as part of a confirmation process.

Board resolutions are usually drafted at board meetings. They need to be approved by a majority vote of the board. They may also be ad-hoc documents that are approved by a vote and then approved by the board outside of the meeting. There are many different kinds of resolutions, such as motions to waive notice, minutes, and adjournment.

In a meeting the board will be discussing the proposed resolution to determine if any additional information or details are needed. A member of the board will then propose to adopt the resolution, and a seconder will be the one to vote. Once the motion has been seconded the board will vote on it according to a procedure stipulated in the bylaws of the company. The votes are recorded in the minutes of board meetings by the corporate secretary. The resolution is then signed by the appropriate officers.

While the process of writing and recording a board resolution https://boardroomonline.net/how-to-reduce-complexity-and-increase-productivity-for-board-members/ can be intimidating for new board members, having a clear understanding of how to draft a resolution makes the process much simpler. By adhering to a standard format and presenting clear concise information boards can quickly and efficiently adopt resolutions that are in line with the organization’s requirements. Make sure that the resolutions you pass are legal and efficient by storing them in an online, secure repository using Board Management Software.