How to Get Started Drafting Effective Board Resolutions
Board resolutions are documents which record the critical decisions taken by board members. They also allow individuals or organizations www.dataroombiz.info/a-comprehensive-guide-to-board-resolutions-drafting-effective-templates-and-avoiding-common-mistakes to take the action decided. They are an important aspect of a board’s authority, and may have legal implications. However, drafting effective resolutions is a challenge for directors who are unfamiliar with the process.
The best way to get acquainted with the format and language of a resolution is to work with a pre-made template that’s stored in your portal for boards. This will make it simpler for members to draft resolutions and ensure that it adheres to the required format.
A good board resolution begins with « Whereas, » which explains the reasoning and facts that led to a decision. It is concluded with « resolved, » which identifies the specific action to be taken. The resolution should include a list of the board members who voted either in favor or against as well as a space for the chairperson (or authorized signatory) to sign their name.
It is also important to note that a resolution can only be approved only if all directors present in the same room at a board meeting. This is a challenge when you have directors who reside in different cities or countries and that’s why using a template for a board resolution is extremely beneficial. It allows board members to draft and adopt resolutions accurately and quickly, without waiting for everyone to be in the same room in a formal meeting.