Board resolutions are written documents that contain the most important decisions taken by board members. They also give individuals or organisations to take the actions decided. As such, they constitute an essential part of a board’s power and can have legal consequences. It can be challenging for new directors to create effective resolutions, especially if they are Web Site not familiar with the process.
It is best to use a template in order to familiarize yourself with the style and language of resolutions. The template can be found in your board portal. This will make it simpler for members to draft resolutions and ensure the document follows the required formatting.
A good board resolution starts with “Whereas” statements that explain the essential facts and reasoning behind a decision. It concludes with “resolved” clauses which clearly state the specific procedure to be taken. The resolution should include a list of all board members who have voted either in favor or against as well as a space for the chairperson (or the authorized signatory) to sign their name.
Also, it’s important to keep in mind that a resolution can only be implemented when all directors are present in person at the board meeting. It can be a challenge to coordinate if your directors reside in different cities or even countries. This is the reason why a template of a board resolution comes in handy. It allows the board to draft and adopt resolutions quickly and accurately without having to wait for everyone to be available in the same room for a formal board meeting.