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 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.

A lire également

Laisser un commentaire

Votre adresse e-mail ne sera pas publiée. Les champs obligatoires sont indiqués avec *