Board Resolution Template

To understand better what a board resolution template is, let’s first describe the setup of a business organization. When there’s a need to make decisions on behalf of the company, the directors will pass different kinds of board resolutions. The decision can cover anything relevant to the affairs of the organization like a decision extending loans to other companies or when voting for a new member to join the board. You can use the board resolution format if: You have to document a decision made during a Board of Director’s meeting.You need to document a decision made by the Shareholders of the company. The resolution serves as a compliant document and gives the company a written record of the approved decisions. Instead, you must keep the resolutions under file with the company’s books. A simpler way of defining a board resolution template is an official document which says something about an important issue on company matters that the board wants to have documentation of. The ones who can create this document are the company’s Shareholders on behalf of the company, Board of Directors, or even a government entity. There are several reasons to create a board resolution format but technically, the Board can come up with one for any reason they come up with. Here are the most common reasons for this document: To document the voting of a new board member.To document a decision which they made in one of the board meetings.To document a decision that the shareholders made.When the company will hire new employees.When the company wants to sell some shares.When the non-profit organization needs to delegate funds to certain projects.

what is board resolution?

You can also keep this document together with the minutes of the meeting because resolutions are documents which are legally binding. The drafting of a board resolution template requires guidance from the constitution of the company and its shareholders. For this, it’s imperative to consider the types of issues carefully, especially the ones which require voting when you present a sample board resolution. For instance, to change the name of a company, you need a special kind of resolution which can only get approved with at least 75% of the votes. A board resolution may pass in a Board of Director’s meeting. Any of the board members can call a meeting by providing reasonable notice to the other members of the board and the caller should provide an agenda so that the other members can prepare for discussions. As such, this member, with the consent of the other board members can still take part in the meeting using different means. The chair’s voting right or not depends upon the company. When making a decision about the matters to place before the board of directors, each of the directors has a single vote. So that the board can approve of an issue, they must first consider the type of resolution to use.

how to write board resolution template

It depends upon the terms written on the constitution of the company and the shareholders’ agreement.Unanimous Resolution This type refers to the agreement of all the directors who attended the board meeting. This means that 100% of those present must be in favor of the issue to pass. As a rule of thumb, you can use ordinary resolutions to pass the daily decisions involved in the company’s operations. It’s not as common to have unanimous resolutions as this may logistically be very difficult for the company to make any kind of changes. The truth of the matter is, once you get familiarized with the components of the resolution, they’re really not that hard to compose. It’s recommended that before starting to write one, look at some of the sample board resolutions that other persons have written. Here are some pointers that can guide you when writing this template: When creating the board resolution format, put the date and the resolution number at the top of the page. If it’s the first resolution of the board, you can use any number that suits you. You may want to start every paragraph with the word “Whereas.”You can proceed to write out each important statement of the resolution. Again, each paragraph should start with the word “Whereas.”The final statement of the resolution should state the final resolution or the decision which the Board has adopted.

Before finalizing the document ask another person to read it to catch any mistakes you may have missed.

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A board resolution may also be referred to as a corporate resolution. It’s important to review the role of the board, managers and shareholders in order to understand the purpose of board resolutions. The board is the governing authority that is responsible for making major decisions about the current and future state of the corporation. A good summation of a board resolution is that it’s a formal document that identifies the roles of the corporate officers along with their board meeting decisions and results. The resolution gives a committee or other authorized person the ability to take action on a matter that the board voted on.

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One of the most common situations that calls for a board resolution is when a new director gets voted onto the board. Boards write resolutions for issues such as expanding the company, hiring or laying off a significant number of workers, selling additional shares of the company, purchasing intellectual property rights and other major decisions that materially affect the company. There is no hard and fast set of circumstances that triggers the need for writing a board resolution. Boards also use resolutions to provide documentation for issues that the shareholders have decided. Boards typically store board resolutions and the sample board resolution with the rest of their bookkeeping records.

The board portal system provides a secure, online document storage system to preserve founding governance documents, board resolutions and other documents for the life of the corporation. Board directors can also use the tool to vote “yes” or “no,” or abstain from the vote, without using a signature. Board resolutions may be long or short, depending on the nature of the resolution. The important thing is that they identify the issue that the board voted on, the names and roles of those who voted, the results and the final certification. Board management software expedites the process of writing board resolutions without compromising compliance or quality.