What Is A Board Resolution?

A corporate resolution is another name for a board resolution. It’s a formal record that commits significant decisions made by boards of directors to writing. When they add new directors to the board, boards typically draft board resolutions. Resolutions provide committees the authority to act on issues that the board has voted on.

Board resolutions are official documents that also serve as proof that the board and/or its shareholders were involved in certain decisions about the business or organization. As a record of corporate business affairs, some other agencies may ask to see copies of board resolutions.

How Should a Board Resolution Be Written?

Although a board resolution is a significant document and a legal record, its structure is surprisingly short and straightforward. Board resolutions can be written in a formal or straightforward manner, depending on the situation. Board decisions must be made on the company’s letterhead. The language only outlines the course of action that the board decided to adopt. Additionally, it lists the parties to the resolution and the date the action was taken.

What Motivates Boards to Draft Board Resolutions?

There are several significant reasons why boards of directors might draft resolutions. Typically, boards draft resolutions to formally record in writing material that was decided upon and approved. Boards may draft resolutions for any reason they think suitable, and there are numerous standard sorts of board resolutions. The reasons boards write and formalize board resolutions are listed below.

For any reason, boards need a record of what happened during board meetings.

The board requires written confirmation of the decisions made by the corporation’s shareholders.

    1. The board intends to grow the business.
    2. Due to financial difficulties, the corporation must hire or fire a sizable number of people.
    3. The board and shareholders concur that it is reasonable to sell more company stock.
    4. Intangible property rights are something the board wants to buy.
    5. The board is about to make a crucial choice that will have a big impact on the business.
    6. One or more executives have had their job terminated by the board in some other way.
    7. New stock option regulations need to be established by the board.
    8. The board wants to express formal support for specific executive responsibilities.
    9. The board may decide to draft a resolution to help the business set objectives for its branding.
    10. To make sure that the business has the right resources at its disposal, boards may need to draft a resolution.

Some Organizations Might Need a Board Resolution

In order to commit to a transaction involving the purchase or sale of real estate, intellectual property, financial assets, or other assets, directors are frequently required to craft a board resolution. Banks, trading houses, asset managers and title companies often require board resolutions in certain situations.

Managing Board Resolutions with Board Management Software

A board’s work is significantly influenced by its resolutions. Their work is frequently of an urgent nature, particularly when it involves board resolutions. board portal provides a secure, electronic platform where board members and executives can communicate privately on crucial issues like board resolutions. Board portal enables board members to vote remotely on board resolutions, which is quicker and more effective than attempting to call an urgent board meeting to address a single subject.

Granular permissions are another element of the board portal, allowing board admins to specify user access for different types of meetings in order to increase security. When a board resolution is requested, the board secretary can easily access it online and print or share it. For secure recordkeeping, the platform offers limitless cloud storage.